Question 1

__________, 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

Price discrimination is the practice of charging different prices to different customers for the same product or service, and it is common in both consumer and business markets, as well as among different members of the supply chain.

Question 2

The exchange process tends to break down when marketing activities deviate from accepted standards.

Accepted Answer

When marketing activities deviate from accepted standards, they can lead to mistrust, misunderstanding, or perceived unfairness among parties, causing the exchange process to break down as the foundational trust and value propositions are undermined.

Question 3

__________ 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 is the concept that refers to an organization's duty to act in the best interests of their environment and society as a whole, focusing on both maximizing positive impacts and minimizing negative ones.

Question 4

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 than formal government regulations. They rely on industry cooperation and standards, avoiding the need for extensive legal frameworks and enforcement mechanisms.

Question 5

Perhaps the best known self-regulatory association is the Better Business Bureau.

Accepted Answer

The Better Business Bureau (BBB) is widely recognized as a reputable self-regulatory organization that focuses on advancing marketplace trust by setting standards for ethical business behavior and monitoring compliance among its members.

Question 6

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

Because the large firms have efficient cost structures and lower variable costs.

Question 7

Which activity is part of a stakeholder orientation? ​

Accepted Answer

Stakeholder orientation involves generating data about stakeholder groups and assessing the firm's effects on these groups.

Question 8

According to the pyramid of social responsibility, legal responsibilities are the foundation upon which all other responsibilities rest.​

Accepted Answer

Economic responsibilities are considered the foundation in the pyramid of corporate social responsibility, as businesses must be profitable to survive and fulfill other responsibilities.

Question 9

Codes of conduct try to address every ethical issue the company is likely to face.

Accepted Answer

Codes of conduct provide general guidelines on ethical behavior but cannot possibly address every specific ethical issue a company might face due to the vast and unpredictable nature of ethical dilemmas in the business world.

Question 10

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

Upholding standards of integrity is crucial for building trust among stakeholders, as it ensures that the firm and its employees act ethically and responsibly in all their dealings.

Question 11

Social entrepreneurship is similar to strategic philanthropy, but a major difference is that companies' social entrepreneurship programs are not the primary purpose of the organizations or reason for their existence.​

Accepted Answer

The answer of Social entrepreneurship is similar to strategic philanthropy,...

Question 12

_________ occurs when a firm advertises a sale price as a reduction below the normal price when it is not the case.

Accepted Answer

Superficial discounting occurs when a firm advertises a sale price as a reduction below the normal price when, in reality, the "discounted" price is not actually a reduction from the normal selling price.

Question 13

The current view of marketing held by most practitioners is that ethics and social responsibility are good supplements to business activities but are not essential.

Accepted Answer

The current view held by most marketing practitioners emphasizes that ethics and social responsibility are integral and essential to conducting business, not just supplements. This approach aligns with the broader understanding that sustainable and ethical practices contribute to long-term success and positive brand image.

Question 14

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

The link between marketing ethics/social responsibility and firm performance is most evident in firms that have a strong ethical climate. This is because an ethical climate fosters a culture of trust, responsibility, and integrity, which are crucial for implementing ethical and socially responsible practices effectively. These practices, in turn, can lead to improved firm performance through enhanced reputation, customer loyalty, and employee satisfaction.

Question 15

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

Accepted Answer

E is incorrect because it suggests a perception that is not typically a challenge associated with being ethical and socially responsible. In reality, values like honesty, respect, and trust are fundamental to ethical behavior and social responsibility in the workplace.

Question 16

A stakeholder orientation can be viewed as a continuum in that firms are likely to adopt the concept to varying degrees.

Accepted Answer

A stakeholder orientation recognizes that different firms will adopt and integrate stakeholder considerations into their strategies and operations to varying extents, reflecting a continuum from low to high levels of stakeholder engagement and prioritization.

Question 17

Channel stuffing is an ethical issue related to the supply chain.

Accepted Answer

Channel stuffing involves deliberately sending retailers more inventory than they can sell, often to artificially inflate sales figures. This practice can mislead investors and distort the true financial health of a company, raising ethical concerns.

Question 18

Greenwashing is a promotion-related ethical issue.

Accepted Answer

Greenwashing refers to the practice of companies misleading consumers about the environmental benefits of a product or service, which is an ethical issue related to how products are promoted.

Question 19

This type of activity strives to create social value rather than simply earn profits.

Accepted Answer

Social entrepreneurship focuses on creating social value and addressing social issues, prioritizing impact over profit.

Question 20

An action is considered ethical if it adheres to all legal and regulatory requirements.

Accepted Answer

Ethics and legality are not the same; an action can be legal but not ethical, as ethics also considers moral principles beyond just legal compliance.

Quiz 8: Ethics and Social Responsibility in Marketing Strategy