Question 1

Being economically responsible is the most basic social responsibility of any business.This responsibility has the most immediate effect on:

Accepted Answer

Shareholders are directly impacted by the economic responsibility of a business, as their financial investments are on the line. While customers, the government, and the media may also be affected by a business's financial decisions, they are not as directly impacted as shareholders.

Question 2

The link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time.This link is most evident in firms that have a strong __________.

Accepted Answer

Firms with a strong ethical climate prioritize ethical behavior and social responsibility, which can improve their reputation and attract loyal customers. This can ultimately lead to better firm performance. A strong market or stakeholder orientation, sense of customer loyalty, or employee satisfaction program may also contribute to firm performance, but they are not directly linked to marketing ethics and social responsibility.

Question 3

__________,which occurs when a firm charges different prices to different customers,occurs in both consumer and business markets.However,it is very common among different members of the supply chain.

Accepted Answer

A

Question 4

Socially responsible firms tend to enjoy higher __________ because customers perceive that the firm is dedicated to doing the right thing and treating customers fairly.

Accepted Answer

Socially responsible firms often enjoy higher customer loyalty because consumers tend to have more positive attitudes and emotions towards companies that are perceived to be socially responsible. This can lead to repeat business and positive word-of-mouth recommendations, ultimately increasing sales volume and profit margins. Additionally, a socially responsible company is likely to have a strong corporate reputation, which can further enhance customer loyalty.

Question 5

Why is the connection between marketing ethics and leadership so important in nurturing a strong ethical culture?

Accepted Answer

The connection between marketing ethics and leadership is important in nurturing a strong ethical culture because employees look to the leader as a model of acceptable behavior. The leader sets the tone for the organization and their behavior and values are observed and emulated by employees. A leader who consistently demonstrates ethical behavior creates a culture where ethical behavior is valued and expected of all employees.

Question 6

Research indicates that being ethical and socially responsible has a number of benefits for the organization.Which of the following IS NOT one of these benefits?

Accepted Answer

Research has found that being ethical and socially responsible leads to benefits such as increased customer goodwill, stakeholder orientation, employee commitment and satisfaction, and marketing performance. However, there is no evidence to suggest that it leads to an increased competitive orientation.

Question 7

The role of ethics in marketing strategy can be distilled into one word.Without __________,marketers run the risk of alienating stakeholders and inviting financial ruin.

Accepted Answer

Trust is crucial in marketing strategy as it establishes credibility and builds long-term relationships with customers, stakeholders, and society. Without trust, a marketing strategy can backfire and create a negative reputation, leading to financial loss and alienation of stakeholders. Responsibility, sustainability, and verification are also important, but they are subsets of ethics and rely on trust to be effective.

Question 8

To ensure that ethics and social responsibility are thoroughly incorporated into the firm's strategic planning process,the firm's __________ should never be silent about ethical requirements and social responsibility.

Accepted Answer

The answer of To ensure that ethics and social responsibility...

Question 9

Each of the following is a potential product-related ethical issue EXCEPT:

Accepted Answer

Invasion of privacy is not directly related to the product itself but rather the company's actions or practices. The other options all involve issues with the actual product being sold or its representation to the consumer.

Question 10

The principles and standards that define acceptable marketing conduct as determined by the public,government regulators,private-interest groups,competitors,and the firm itself are termed:

Accepted Answer

Marketing ethics refers to the principles and standards that define acceptable conduct in marketing as determined by various stakeholders including the public, government regulators, private-interest groups, competitors, and the firm itself.

Question 11

Which of the following IS NOT a challenge associated with being ethical and socially responsible?

Accepted Answer

This is the only choice that states a perception rather than an actual challenge associated with being ethical and socially responsible. The other choices describe challenges that arise due to the complex nature of business decisions, the need to make quick decisions in gray areas, potential inconsistencies between personal values and work group values, and the need to navigate differing experiences and decision-making contexts.

Question 12

Essentially,having a climate of ethics and social responsibility is all about creating trust among a firm's stakeholders.To gain trust,the firm and its employees must continuously uphold:

Accepted Answer

The answer of Essentially,having a climate of ethics and social...

Question 13

Some companies choose to engage in a deceptive marketing practice called __________,which involves misleading consumers into thinking that a product is more environmentally friendly than it actually is.

Accepted Answer

The term "greenwashing" specifically refers to the deceptive marketing practice of making a product seem more environmentally friendly than it really is. The other options are related to environmentally conscious practices, but do not necessarily involve deception.

Question 14

Most firms that experience ethical or legal problems actually have a code of conduct or an ethical compliance program in place.Why is it that these firms can still have ethical problems despite having a code of ethics or compliance program?

Accepted Answer

The reason why some firms still experience ethical problems despite having a code of conduct or ethical compliance program is because these codes are typically not integrated into daily decision making. In other words, employees may be aware of the code, but not actively using it to guide their behavior and decision making. This can be due to a lack of training or reinforcement of the code's principles, or a lack of leadership in promoting and modeling ethical behavior. The other options (A, B, D, and E) may also contribute to the ineffectiveness of a code of ethics, but they are not as significant as the lack of integration into daily decision making.

Question 15

__________ is a broad concept that relates to an organization's obligation to maximize its positive impact on society while minimizing its negative impact.

Accepted Answer

Social responsibility refers to an organization's responsibility towards society and the environment. It involves taking actions that are in the best interests of society as a whole and striving to contribute to sustainable development. This includes ethical business practices, community involvement, environmental protection, and social initiatives. The concept of social responsibility is becoming increasingly important as companies recognize the impact they can have on society and the environment, and the role they play in creating a better world.

Question 16

Colgate promotes its toothpaste using a claim that states "helps fight plaque and gingivitis." What potential ethical issue does Colgate have with respect to its promotional strategy?

Accepted Answer

The answer of Colgate promotes its toothpaste using a claim...

Question 17

Research has found that corporate codes of ethics should contain six highly desirable core values or principles.Which of the following IS NOT one of these core values?

Accepted Answer

According to research, the six highly desirable core values or principles that should be included in corporate codes of ethics are trustworthiness, respect, legality, fairness, citizenship, and responsibility. Therefore, option C, legality, is not a core value that should be included in the corporate code of ethics.

Question 18

Ben & Jerry's is well known for its use of __________ in that it ties its products and marketing strategy to social causes such as environmental stewardship.

Accepted Answer

Ben & Jerry's use of tying social causes to its products and marketing strategy is known as cause-related marketing.

Question 19

With respect to regulating marketing ethics,a key advantage of self-regulatory programs like the Better Business Bureau is the fact that they are:

Accepted Answer

Self-regulatory programs like the Better Business Bureau are less costly and more practical to implement, which is a key advantage. They don't involve the resources and bureaucracy that government regulations do, making them easier for businesses to adopt and enforce. While they may not necessarily be stricter than government regulations, they can still be effective in promoting ethical practices. They are not tied to state and local regulatory agencies, but rather operate independently.

Question 20

Many large firms,such as Walmart,Home Depot,Lowe's,and Barnes & Noble,have been accused of predatory pricing because their business practices have put many local,mom-and-pop firms out of business.In reality,these large firms are not necessarily guilty of predatory pricing.Why?

Accepted Answer

Predatory pricing occurs when a large firm deliberately sets prices below cost to drive smaller competitors out of business. However, in the case of firms like Walmart, Home Depot, and Lowe's, their efficient cost structures and competitive advantage enable them to offer lower prices without operating at a loss. This is not necessarily predatory pricing, but rather a result of economies of scale and lower variable costs. Therefore, choice C is the best answer.

Quiz 8: Ethics and Social Responsibility in Marketing Strategy