Deck 3: Social Responsibility, ethics, and the Marketing Environment

Question 1

Most businesspeople exhibit preconventional morality.

Answer 1

True

Question 2

Multiculturalism occurs when all major ethnic groups in an area are roughly equally represented.

Answer 2

True

Question 3

Consumers today do not necessarily fit into traditional stereotypes,but may instead choose products and services that meet a variety of needs.Such diverse purchasing habits reflect component lifestyles.

Answer 3

True

Question 4

Psychography is the study of people's vital statistics such as their ages and locations.

Question 5

Because the Lifetime Movie Network is targeting young women with its new movie Latchkey Kids on the Run,its movie is obviously directed toward cohort generations.

Question 6

Champion Lyte is a sugar-free sports drink designed to replenish electrolytes lost during activity or illness.Since the product was designed primarily for diabetics,health care professionals who treat diabetics would be the product's primary target market.

Question 7

Marketers can best reach Generation Y members through television and magazine advertising.

Question 8

The phenomenon of working women has probably had a greater effect on marketing than has any other social change.

Question 9

While a single firm cannot control the elements in the external environment,a firm can sometimes influence that environment.

Question 10

Business people find it impossible to pursue the older consumers market because it is so diverse.

Question 11

In 2003,Hispanics overtook African-Americans to become America's largest minority group.

Question 12

Tyson Foods,Inc.was fulfilling its philanthropic responsible when it donated 10 million pounds of food to fight hunger.

Question 13

Many companies have found that issuing a policy on ethical behavior is the only action necessary to ensure that employees will comply with expected standards.

Question 14

U.S.companies excel at applied research and are weak when it comes to basic research.

Question 15

The foundation for the pyramid of corporate social responsibility is philanthropic responsibility.

Question 16

Inflation is a general rise in prices with a corresponding increase in wages,which results in decreased purchasing power.

Question 17

Morals are rules people develop as a result of cultural values and norms.

Question 18

Marketers can control the external environment in which their organizations operate.

Question 19

When writing codes of ethics,businesses must ensure their codes deal with every possible situation.

Question 20

Social factors in the marketing environment influence the products people buy,the prices paid for products,the effectiveness of specific promotions,and how,where,and when people expect to purchase products.

Question 21

Champion Lyte is a sugar-free sports drink.In developing the new product,its manufacturer thoroughly studied the legal restrictions on the drink's ingredients,packaging,manufacturing,and labeling and has abided by all such restrictions.In this way,the manufacturer of Champion Lyte drinks conducted its examination of all political and legal factors that might affect the product's marketing.

Question 22

Terrorism has a profound effect on American business and commerce worldwide.

Question 23

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

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

Question 24

_____ 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) Corporate social responsibility
C) Cultural sensitivity
D) Conventional morality
E) Environmental consideration

Question 25

Hewlett Packard is currently investing $1 billion to bring tele-medicine and e-learning to 1,000 villages in the developing world which have only limited medical facilities and educational opportunities.Not only is this good business,it is also:

A) mandated by Supreme Court rulings
B) socially responsible
C) unrelated to any ethical motivation
D) demonstrating a lack of concern for diversity
E) environmental marketing

Question 26

In the future,electrical power may come from quantum nucleonics,a form of nuclear power that produces no residual radiation.The ability to use this form of power will require equipment adaptations,but it will solve the world's need for clean and efficient power.Companies that replace inefficient sources of power with quantum nucleonics before any government mandates to do so will be operating at a(n)_____ responsibility level.

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

Question 27

Marketers need a thorough understanding of the laws established by the federal government,state governments,and regulatory agencies.

Question 28

Corporate social responsibility:

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

Question 29

In the future,electrical power may come from quantum nucleonics,a form of nuclear power that produces no residual radiation.The ability to use this form of power will require equipment adaptations,but it will solve the world's need for clean and efficient power.Companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency (EPA)are operating at a(n)_____ responsibility level.

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

Question 30

An obese man in New York sued McDonald's,Burger King,Wendy's,and KFC because he claims the fast-food giants caused his diabetes and other health problems.The suit is an example of a problem caused by competitive factors.

Question 31

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

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

Question 32

For every home built by Habitat for Humanity,Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family.This donation of appliances is an example of how companies assume their:

A) corporate social responsibility
B) ethical conveyance
C) duty to engage in cause marketing
D) right to engage in social marketing
E) multiculturalism

Question 33

Champion Lyte is a sugar-free sports drink designed to replenish electrolytes lost during activity or illness.Gatorade and Powerade are part of Champion Lyte's competitive environment.

Question 34

The competitive environment of a business encompasses the number of competitors the firm must face,the relative size of the competitors,regulatory agencies,and the degree of interdependence within the industry.

Question 35

Girls between the ages of 8 and 15 are one of the growing markets for high-end shoe manufacturers,and podiatrists say the trend is leading to many stylish young girls with grown-up foot problems.Shoe manufacturers who develop and market shoes to this group are not operating at a _____ responsibility level.

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

Question 36

The pyramid of corporate social responsibilities contains all of the following components EXCEPT:

A) economic responsibilities
B) ethical responsibilities
C) cultural responsibilities
D) legal responsibilities
E) philanthropic responsibilities

Question 37

Japanese law prohibits more than 50 pounds of explosive be stored at any site in the nation.Every night Universal Studios Japan hosts a fireworks display.The theme park recently came under government investigation when allegations were made that the park was detonating more than 50 pounds of explosives in its nightly fireworks displays.If the allegations are true,then Universal Studios Japan is not operating at a(n)_____ responsibility level.

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

Question 38

Corporate social responsibility is defined as the:

A) belief that the legal system defines ethical behavior
B) development of inclusive codes of ethics
C) rules by which social rewards are attained
D) concern for social welfare by businesses
E) coordination of social programs for publicity purposes

Question 39

One of the favorite foods in Thailand is shark fin soup.A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison,yet the leading producer of shark fin soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be profitable.This indicates that the soup manufacturer was operating at a(n)_____ responsibility level.

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

Question 40

Tameiko Rosario purchased a crib that collapsed and injured her son even though she had following the followed its manufacturer's instructions completely.She believes the crib has a faulty design.Rosario should voice her concerns to the Federal Trade Commission (FTC).

Question 41

A _____ is a defined group that managers feel is most likely to buy a firm's product.

A) target market
B) buying center
C) aggregated unit
D) consumer cluster
E) demographic sample

Question 42

A human resources manager is creating a code of ethics for the employees of the cruise line she works for.Which of the following is NOT an ethics principle she should keep in mind as she creates this code?

A) The principles should not upset current barn workers and future job applicants.
B) Any decisions should be fair to all concerned: barn workers,riders,instructors,and horses.
C) Input on the code should be gained from other knowledgeable individuals or groups.
D) Principles can deviate from common practices because of the prestigious nature of the facility.
E) She should not have to pull rank or use coercion to implement her ethics code.

Question 43

Hildy Garth is a sales manager for Chez Ami,a company that sells classic high-end priced 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.Garth is most likely at the _____ stage of ethical development.

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

Question 44

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 only change when the features and benefits of the product offering changes.
E) Target markets cannot be specifically defined according to age,income,or location because these factors are continually changing.

Question 45

Which of the following factors does NOT tend to influence ethical decision making and judgments?

A) probability of a harmful outcome
B) length of time between decision and the onset of consequences
C) level of multiculturalism
D) number of people to be affected
E) potential magnitude of the consequences

Question 46

_____ 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) Philanthropy
C) Cause marketing
D) Creative ethics
E) International ethics

Question 47

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

A) their competitors' strategies
B) the economic conditions which influence the growth of technology
C) how consumers are assimilating new technology
D) changing social attitudes towards technology
E) all of these

Question 48

Marketing managers cannot control ____,but they can at times influence it.

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

Question 49

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

A) behavioral practice
B) moral ruling
C) code of ethics
D) direction of value
E) principled regulation

Question 50

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

A) reengineering
B) environmental management
C) social machinations
D) technology diversity
E) synergistic research and development

Question 51

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) A code can be an effective internal control on behavior.
C) The process of formulating the code facilitates discussions that ultimately creates better decisions.
D) A code helps employees identify what their firm recognizes to be acceptable business practices.
E) All of the statements about the creation of a code of ethics are true.

Question 52

Colorific is a relatively new competitor for Crayola coloring products.In September,the _____ for Colorific products is people buying school supplies.

A) target market
B) buying center
C) mass market
D) consumer sample
E) aggregated demography

Question 53

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

A) Sustainability is an internal process in which companies match resources and objectives.
B) Sustainability is the idea that socially responsible companies will outperform their peers when they focus on the world's problems as marketing opportunities.
C) According to the theory of sustainability,a company cannot be socially responsible without a code of ethics and managerial support of that code.
D) According to the theory of sustainability,ethical behavior should never be viewed as the means of obtaining a competitive advantage.
E) Sustainability is only successful if it focuses on organizational strengths.

Question 54

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

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

Question 55

The four components of the pyramid of corporate social responsibility are:

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

Question 56

Argus Finnian is a calculating,self-centered 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.Finnian is most likely at the _____ stage of ethical development.

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

Question 57

Which of the following statements describes ethics?

A) Ethics are the moral principles or values that generally govern the conduct of an individual.
B) Ethics is the standard of behavior by which conduct is judged.
C) Morals are a foundation for ethical behavior.
D) Ethical values are situation specific and time oriented.
E) All of the above statements describe ethics.

Question 58

The use of ethical decision making:

A) can be influenced by top managers
B) is influenced by the probability of harmful outcomes
C) depends on the number of people to be affected
D) depends on the magnitude of possible consequences
E) is accurately described by all of the choices

Question 59

Ashley Kreeger is the director of marketing for a company that operates several assisted-living centers.The company is developing a marketing plan that must cover the next five years of business.Kreeger must be sure she considers which of the following uncontrollable factors in her plan?

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

Question 60

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.Your ability to control _____ will most likely determine the future success of the country and its government.

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

Question 61

Many people in the United States choose to drink light beer because Americans value thin and fit bodies.In Europe,light beers have had little success because flavor is valued more highly.For international beer manufacturers,this difference illustrates how _____ influence marketing.

A) demography
B) competition
C) social factors
D) economic conditions
E) cultural factors

Question 62

The external environment is a strong influence on a target market and can be a source of _____ for the marketing manager.

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

Question 63

Ephenia Moore is a district attorney in Vermont.She is also a certified scuba diver,published poet,and a single parent.Her other interests include sewing,scrapbooking,and square dancing.Marketers would categorize Moore as:

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

Question 64

More and more U.S.citizens are enjoying _____,a piecing together of a variety of interests,products,and services,and are not conforming to traditional stereotypes.

A) well-defined segments
B) component lifestyles
C) simple multipurpose products
D) conformity and cohesiveness
E) modular market mixes

Question 65

Consumers are increasingly asking the source of the products they are buying and not buying wood that is from a nation that is destroying its environment.As a result commercial buyers are asking the same questions to Indonesian suppliers.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.The companies hope this coding will provide evidence that they are engaging in:

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

Question 66

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 _____ is extremely difficult,and it is the most important factor for a company to understand.

A) demographic trends
B) economic trends
C) legislative trends
D) technological trends
E) social trends

Question 67

Consumer preference for low-carb diets has greatly modified the way food is being marketed.This concern with health issues is an example of a(n)_____ factor.

A) economic
B) political and legal
C) technological
D) demographic
E) social

Question 68

The most difficult external variable for marketing managers to forecast or influence would be _____ factors.

A) political
B) economic
C) social
D) legal
E) demographic

Question 69

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.A large number of them canceled their plans to fly to a vacation destination and opted to drive to one that was closer for safety reasons and as a way to bond more closely with their family members.Vacation destinations in Florida particularly suffered a decline in business.One can argue that for the U.S.tourist industry,the decline in tourism was due to:

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

Question 70

One of the favorite foods in Thailand is shark fin soup.A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison.As a result,sales for this company plummeted.The popularity of this soup in Thailand represents a(n)______ factor while claims of mercury poisoning relate to lax enforcement of environmental protection and consumer protection regulations by the Thai government,a(n)_____ factor.

A) economic; technological
B) social; technological
C) social; political and legal
D) competitive; economic
E) social; technological

Question 71

When a company engages in _____,it is implementing strategies that attempt to shape the external environment in which it operates.

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

Question 72

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

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

Question 73

A(n)_____ 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) aggregated lifestyle
B) component lifestyle
C) psychographic mode of living
D) demographically-defined lifestyle
E) targeted lifestyling

Question 74

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

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

Question 75

The growth of dual-income families has resulted in:

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

Question 76

_____ factors are the environmental factors concerned with the changes in people's values,lifestyles,and family roles.

A) Social
B) Economic
C) Political
D) Competitive
E) Demographic

Question 77

The Michigan State 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.The concert promoters and venue operators engaged in:

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

Question 78

The external environment:

A) can be controlled in much the same manner as the internal marketing mix
B) cannot be influenced by marketing managers
C) does not change over time
D) does not have an impact on Fortune 500 companies
E) must be continually monitored by marketing managers

Question 79

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 _____ factors.

A) natural environmental
B) demographic
C) technological
D) social
E) political

Question 80

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.P&G responded to _____ factors when it changed its Asian packaging.

A) demographic
B) competitive
C) technological
D) social
E) component cultural