Deck 19: Responsible Marketing

Question 1

According to your text, consumer surveys of marketing practice suggest that consumers are concerned about:

A) dangerous products.
B) high prices.
C) misleading advertising claims.
D) poor- quality products.
E) all of the above

Answer 1

E

Question 2

Barbara was invited to attend a presentation for a well- known hotel chain selling hotel accommodations on a subscription basis. She had been promised a free gift of one week's hotel accommodation in return for her attendance. After listening to the presentation, Barbara found that she could not receive the free gift until she sat down in a face- to- face consultation with a sales representative who delivered a more detailed sales presentation. When Barbara expressed her lack of interest, the sales rep summoned a supervisor who was apparently the only person authorised to give the free gift. To Barbara's dismay, the supervisor then embarked on yet another lengthy sales presentation. Barbara's experience is BEST described as:

A) high pressure selling.
B) deceptive selling.
C) pyramid selling.
D) persuasive selling.
E) personal selling.

Answer 2

A

Question 3

The firm emphasises improvements in product quality, features, or convenience above schemes to increase short- run sales based on the principle of:

A) customer- value marketing.
B) social marketing.
C) environmental marketing.
D) sense- of- mission marketing.
E) competitive marketing.

Answer 3

A

Question 4

The challenge posed by pleasing products is to:

A) add long run benefits without reducing market appeal.
B) use reminder advertising to remind consumers of the pleasing attributes.
C) harvest to ensure they return their full potential to the company.
D) add attributes of features to enhance market appeal.
E) none of the above

Question 5

The company that continuously seeks real product and marketing improvements is based on the principle of:

A) social marketing.
B) consumer marketing.
C) innovative marketing.
D) competitive marketing.
E) productive marketing.

Question 6

Seatbelts and airbags for automobiles are examples of a:

A) pleasing product.
B) good product.
C) deficient product.
D) desirable product.
E) salutary product.

Question 7

Companies that adopt a forward looking philosophy to product design and investigate ways to incorporate design features that make products easier to recover, reuse, recycle or safely return to nature after usage, becoming part of the ecological cycle are said to practise:

A) pollution control.
B) pollution prevention.
C) product stewardship.
D) ecological innovation.
E) cradle- to- cradle practices.

Question 8

During the recession of 1993, when corporate investment was low, the Coles Group announced plans for a major investment programme in new and renovated stores with a view to stimulating the economy. This initiative is BEST described as which of the following?

A) private sector protectionism.
B) consumer oriented marketing.
C) sense- of- mission marketing.
D) proactive marketing.
E) innovative marketing.

Question 9

Sellers have traditionally enjoyed each of the following rights EXCEPT the right to:

A) use any incentive schemes that are not unfair or misleading.
B) drive out less efficient competitors by any means necessary.
C) charge any price.
D) introduce any non- hazardous product.
E) Sellers have enjoyed all of the above.

Question 10

Marketers argue that the workings of the competitive and consumers' demands for improved technologies contribute to much of what is called:

A) capitalism.
B) product innovation.
C) planned elimination.
D) planned obsolescence.
E) product modification.

Question 11

Ultimately the move from irresponsible consumption to socially responsible consumption is in the hands of _ .

A) marketers
B) consumers
C) governments
D) citizen action groups
E) advertisers

Question 12

An organised movement of concerned citizens and government to protect and improve the ecological surroundings in which people live is known as:

A) environmentalism.
B) ecoism.
C) climatism.
D) consumerism.
E) all of the above

Question 13

At the supermarket, Matilda notices two similar brands of laundry detergent, each with different sizes and prices namely Brand A, 2.5 litres at $7.62; Brand B, 1.5 litres $5.70. Matilda, who has never been good at mental arithmetic, cannot figure out which brand is the better buy. However, Matilda also notices that the retailer has displayed additional information as follows: Brand A $3.05 per litre and Brand B $3.83 per litre. This type of price display is known as:

A) deceptive pricing.
B) comparative pricing.
C) unit pricing.
D) truth in pricing.
E) none of the above

Question 14

Many firms which package their products while they are hot know that their packages will appear to be significantly less than full after the product cools. These firms often place the notice "contents sold by weight, not volume" on their packages in order to avoid charges of deceptive:

A) packaging.
B) advertising.
C) promotion.
D) pricing.
E) distribution.

Question 15

Any actions that lead consumers to believe that they will receive more value from a product or service than they actually do are considered to be:

A) monopolistic.
B) deceptive.
C) disclaimer.
D) promotional.
E) all of the above

Question 16

The complexity involved in carbon footprinting products means that it is an expensive process. According to one estimate in your text, the cost of footprinting one product can be as much as:

A) $20,000.
B) $50,000.
C) $40,000.
D) $10,000.
E) $30,000.

Question 17

Neither immediate appeal nor long- term benefits are offered in products that are:

A) salutary.
B) desirable.
C) good.
D) deficient.
E) pleasing.

Question 18

The challenge for marketers of salutary products is to:

A) use intensive promotion to persuade buyers that the product is aspirational.
B) add long- run benefits without hurting the product's market appeal.
C) add some pleasing product features and attributes.
D) divest salutary products from the product portfolio.
E) none of the above

Question 19

Mount Eden Furniture routinely places inflated prices on price tags of furniture items, but then slashes the original price to represent a "sale" price. Mount Eden Furniture is guilty of deceptive:

A) pricing.
B) distribution.
C) promotion.
D) packaging.
E) advertising.

Question 20

Although she knows they are good for her, Rangi hates to drink milk or eat spinach and will do so only when forced. These foods would be best described as:

A) desirable products.
B) good products.
C) pleasing products.
D) deficient products.
E) salutary products.

Question 21

Deliberately luring customers to the store for a bargain that is out of stock is an example of deceptive:

A) promotion.
B) packaging.
C) pricing.
D) advertising.
E) distribution.

Question 22

Which of the following statements about consumerism is FALSE?

A) Consumerists argue that consumers should have rights but no responsibility for their product choices.
B) Consumerists are concerned with ensuring that consumers have the information necessary to make informed choices.
C) Consumerists are concerned with quality of life.
D) Consumerists are concerned with strengthening consumer rights in the face of fraud or misleading conduct.
E) All of the above are true.

Question 23

Intel and Microsoft have been accused in recent years of holding back their next generation computer chips or software until demand is exhausted for the current generation. This is a problem found under the concept of .

A) product wear- out
B) cultural pollution
C) product deletion
D) design washout
E) planned obsolescence

Question 24

The consumer's right to be informed entails which of the following principles?

A) product freshness (open dating)
B) the nutritional value of a product (nutritional labelling)
C) the ingredients in a product (ingredient labelling)
D) true cost per unit (unit pricing)
E) all of the above

Question 25

To cause products to become obsolete before they actually need replacement is known as:

A) deceptive packaging.
B) planned obsolescence.
C) deceptive promotion.
D) perceived obsolescence.
E) none of the above

Question 26

A "cooling- off period" in which buyers can cancel a contract after rethinking the contract is designed to protect the consumer from:

A) hard core selling.
B) creative selling.
C) desire marketing.
D) high pressure selling.
E) detail selling.

Question 27

Sportswear manufacturer, Adidas, has embarked on a number of community based projects. Some of its activities include improved pay and conditions for workers in underdeveloped countries, offers of free sports gear to talented athletes from poor socioeconomic groups, low cost brands available in poorer nations and support for local community sports activities including the construction of sports grounds. Adidas' approach is BEST described as:

A) societal marketing.
B) enlightened marketing.
C) customer- value marketing.
D) a public relations push.
E) customer- oriented marketing.

Question 28

The marketer is required to make decisions by considering consumers' wants, company requirements, long- run consumer interests, and the long- run interests of society in:

A) competitive marketing.
B) target marketing.
C) societal marketing.
D) sense- of- mission marketing.
E) value marketing.

Question 29

Carbon footprint labels require manufacturers to identify the quantity (in grams) of _ emissions caused by the manufacture and transportation of the product.

A) carbon dioxide
B) flourocarbons
C) helium
D) carbon
E) ozone

Question 30

The process of looking at all the stages involved in making the product and transporting it to market, working out the energy consumption at each stage, and converting that energy into the resulting amount of carbon emissions is known as:

A) product- consumption miles estimates.
B) environmental costing.
C) social costing.
D) carbon footprinting.
E) green marketing.

Question 31

Mini Case 19- 1
"Citizens for Action" was a consumer watchdog group that monitored marketing activities in Melbourne. Various members of the executive committee were each responsible for a particular area. Melanie logged in complaints that marketing promotion encouraged people to judge one another by what they own rather than by who they are. Matt recorded activities where the selling of private goods appeared to be at the expense of public goods. Murray listened to residents who complained that billboards were ruining their neighbourhood scenery and hurting property values.
Martha works for a group known as Citizens for Action where she is required to locate and report on examples of billboards with explicit sexual messages. Martha's role is related to which criticism of marketing's impact on society as a whole?

A) too few social goods
B) too much political power
C) cultural pollution
D) false wants and too much materialism
E) all of the above

Question 32

The result of advertising's constant assault upon people's senses is said to be cultural:

A) warfare.
B) isolation.
C) pollution.
D) alienation.
E) destabilisation.

Question 33

Mini Case 19- 1
"Citizens for Action" was a consumer watchdog group that monitored marketing activities in Melbourne. Various members of the executive committee were each responsible for a particular area. Melanie logged in complaints that marketing promotion encouraged people to judge one another by what they own rather than by who they are. Matt recorded activities where the selling of private goods appeared to be at the expense of public goods. Murray listened to residents who complained that billboards were ruining their neighbourhood scenery and hurting property values.
Melanie was so incensed by a television commercial that she was prompted to write to the Advertising Standards Board and register her complaint. At issue was an advertisement for a credit card company that encouraged customers to use their credit cards for all purchases in the three months prior to Christmas so as to avail themselves of a limited time offer. The offer consisted to two elements-double loyalty points for each $1 spent and a free entry into prize pool for a trip to Tahiti for every purchase made. Melanie is MOST likely concerned about:

A) too few social goods.
B) too much political power.
C) cultural pollution.
D) false wants and too much materialism.
E) all of the above

Question 34

Examples of competitive practices designed to hurt or destroy the competition include:

A) resale price maintenance.
B) mergers that substantially lessen competition.
C) price fixing.
D) misuse of market power.
E) all of the above

Question 35

According to evidence cited in your text, retailers who have worked extensively with carbon footprint labelling are finding that up to 90 per cent of the footprint associated with a product comes from:

A) the supply chain.
B) warehousing.
C) transportation.
D) retail activities.
E) refrigeration and/or cool stores.

Question 36

Competitive practices that are designed to hurt or destroy the competition are collectively known as:

A) anti- social.
B) deceptive.
C) unfair.
D) predatory.
E) socially irresponsible.

Question 37

When critics charge that marketing harms other businesses, three common practices are cited as evidence of this harm. All of the following are among those practices EXCEPT:

A) unfair competitive marketing practices.
B) shareholder wealth enhancement.
C) acquisitions of competitors.
D) marketing practices that create barriers to entry.
E) none of the above

Question 38

With growing oil shortages, many oil producers re- defined themselves as "energy companies" and broadened their efforts to develop and market alternative forms of energy. This move would be in accordance with:

A) competitive marketing.
B) sense- of- mission marketing.
C) research- oriented marketing.
D) customer- value marketing.
E) societal marketing.

Question 39

Generally, large retailers have margins of approximately:

A) 8 per cent profit on sales.
B) 1.5 per cent profit on sales.
C) 10 per cent profit on sales.
D) 20 per cent profit on sales.
E) 5.5 per cent profit on sales.

Question 40

Australian firms that engage in unfair, misleading or deceptive marketing practices can be prosecuted under which act?

A) Trade Practices Act
B) Consumer Protection Act
C) Anti- competitive act
D) Competition and Consumer Act
E) all of the above

Question 41

To marketing critics, advertising is a major source of cultural pollution.

Question 42

Companies that develop more energy efficient operations, design and develop ecologically safer products and lower carbon emissions are said to practise:

A) design for environment principles.
B) pollution prevention.
C) product stewardship.
D) green marketing principles.
E) pollution control.

Question 43

Products that provide immediate satisfaction and long- run benefits are known as:

A) aspirational products.
B) pleasing products.
C) salutary products.
D) need satisfiers.
E) desirable products.

Question 44

The Body Shop, a very profitable toiletries company, has a clearly articulated and well- known philosophy. It will only use plant materials in its products, is against animal testing, supports community trade, defends human rights and protection of the planet. The Body Shop also has its own charity. The Body Shop's approach is BEST described as:

A) corporate policy.
B) societal marketing.
C) customer- value marketing.
D) enlightened marketing.
E) customer- oriented marketing.

Question 45

"Greed is good" and "Shop till you drop" are slogans that might characterise which of the following social criticisms levelled at marketing?

A) too few social goods
B) cultural pollution
C) planned obsolescence
D) too much political power
E) false wants and too much materialism

Question 46

A global study found that one in two consumers are willing to pay higher prices for products from companies that use renewable energy.

Question 47

One of the traditional buyer's rights described in the text is the right to influence products and marketing practices in ways that will improve the "quality of life."

Question 48

Republica Coffee considers itself to be an ethical company that imports coffee from Columbia, a country with a reputation for growing the world's most superior coffee beans. Republica only imports fair trade products which means that it ensures that third world farmers are paid a fair price for their produce and that they are employed in reasonable conditions. Republica's approach is BEST described as:

A) consumer- oriented marketing.
B) customer- value marketing.
C) sense of mission marketing.
D) societal marketing.
E) innovative marketing.

Question 49

Products that have neither immediate appeal nor any long- term benefit are known as:

A) deceptive products.
B) fads.
C) deficient products.
D) salutary products.
E) none of the above

Question 50

Broad guidelines that cover such issues as distributor relations, advertising standards, customer service, pricing, product development and general moral standards are known as:

A) corporate philosophy.
B) corporate marketing ethics policy.
C) code of conduct.
D) corporate vision.
E) none of the above

Question 51

Which of the following statements about environmentalists is FALSE?

A) Environmentalists are not concerned with corporate profits.
B) Environmentalists are concerned with eco- systems and the broader environment.
C) Environmentalists are not against marketing and consumption.
D) Environmentalists have successfully agitated to bring about environmental regulations.
E) All of the above are true.

Question 52

An organised movement of citizens and government to improve the rights and power of buyers in relation to sellers is:

A) stalinism.
B) consumerism.
C) communism.
D) capitalism.
E) protectionism.

Question 53

A corporate vision that provides a framework for pollution control, product stewardship, and new environmental technology for the company and others to follow is known as:

A) sustainability vision.
B) green marketing.
C) environmental responsibility.
D) social responsibility.
E) all of the above

Question 54

Deficient products have neither immediate appeal nor long- run benefits.

Question 55

Sustainable marketing applies to all of the following groups EXCEPT one. Which one?

A) businesses
B) not- for- profit organisations
C) consumers
D) governments
E) all of the above

Question 56

A global survey found that consumers are willing to pay higher prices for products from companies that use renewable energy.

A) one in two
B) one in ten
C) one in four
D) one in three
E) one in five

Question 57

An estimate of the carbon emissions resulting from the stages in production and transportation of a product and the energy consumption at each stage is known as a product's carbon footprint.

Question 58

A common form of planned obsolescence in the fashion industry consists of changes in:

A) price.
B) quality.
C) style.
D) product.
E) all of the above

Question 59

Enlightened marketing is a form of positioning strategy.

Question 60

The act of minimising not only pollution from production and product design but also all environmental impacts throughout the full product life cycle, while at the same time reducing costs is known as:

A) product stewardship.
B) design for environment.
C) cradle- to- cradle practices.
D) pollution prevention.
E) none of the above

Question 61

A key challenge for marketers of pleasing products is to add long- run benefits without sacrificing the product's current market appeal.

Question 62

Cultural pollution is a major contributing factor to the damage to the ozone layer.

Question 63

Deceptive promotion is another word for subliminal advertising.

Question 64

As an organised movement, consumerism includes the work of both citizens and government.

Question 65

Marketers claim that consumers disapprove of all types of planned obsolescence.

Question 66

The Fun Corporation employs extreme close- ups of its motorised toys and "enhances" the sound they produce in their commercials. The firm may be practising deceptive promotion.

Question 67

An argument against product obsolescence as a marketing sin is that consumers like style changes and technological improvements.

Question 68

The principles of innovative marketing require the marketer to continuously seek real product and marketing improvements.

Question 69

Customer- value marketing emphasises a variety of techniques designed to generate short- term sales.

Question 70

Salutary products are often difficult to sell in spite of their long- term benefits.

Question 71

Consumerism is a political ideology.

Question 72

A "cooling- off" period is favoured by door- to- door sellers because it allows them time to check the buyer's credit record before delivering merchandise.

Question 73

Marketing is often accused of creating high costs of distribution, high advertising and promotion costs and excessive gross profit margins.

Question 74

Having a sense of mission is a principle of enlightened marketing.

Question 75

The Kleen Corporation recently decided not to introduce a new detergent because it was highly polluting and non- biodegradable. This action was in conformity with the societal marketing concept.

Question 76

Fresh produce that is grown, harvested and sold in the local area will always have a lower carbon footprint than food that has been imported from other countries.

Question 77

Environmentalists are not against marketing and corporate profits, they just want companies to operate with greater care for the environment.

Question 78

When an organisation adopts a formal ethics code or a code of conduct, it ensures that all its people act ethically.

Question 79

Too much interest in material possessions has been referred to as false wants.

Question 80

Deceptive pricing involves falsely advertising "factory" or "wholesale" prices or a large price reduction from an artificially inflated retail list price.