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Chapter 16
Marketing Ethics and Social Responsibility

GENERAL CONTENT: Multiple-Choice Questions

1. The marketing concept is a philosophy of customer satisfaction and _____. a. mutual interest
b. mutual gain
c. innovation
d. needs met
e. none of the above
(Answer: b; p. 495; Moderate)

2. You have just read the latest survey about consumers’ attitudes toward current marketing practices. It reveals that consumers in general hold _____ attitudes. a. mixed
b. slightly unfavorable
c. moderate
d. A and B
e. belligerent
(Answer: d; p. 495; Easy)

3. Many critics charge that the American marketing system causes _____ to be higher than they would be under more “sensible” systems. a. distribution costs
b. advertising costs
c. prices
d. markups
e. employee morals
(Answer: c; p. 496; Moderate)

4. A long-standing charge against intermediaries is that they mark up prices beyond the _____. a. value of their services
b. delivery charges
c. going market price
d. range most Americans can afford to pay
e. C and D
(Answer: a; p. 496; Easy)

5. Critics charge that some companies mark up goods excessively. Marketers respond by explaining that most consumer abuses are _____ and that most consumers do not understand the _____ high markups. a. rare; business concepts of

b. unintentional; reasons for
c. rare; reasons for
d. unintentional; business concepts of
e. none of the above
(Answer: b; p. 496; Easy)

6. Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product’s _____ or _____. a. true price; performance
b. features; performance
c. packaging; costs
d. design; features
e. availability; performance
(Answer: b; p. 497; Moderate)

7. A major step in regulating unfair and deceptive business acts and practices was the creation of the _____ in 1938. a. Robinson-Patman Act
b. Wheeler-Lea Act
c. Interstate Commerce Commissions
d. Taft-Hartley Act
e. Stamp Act
(Answer: b; p. 497; Moderate)

8. Marketers argue that most companies avoid deceptive practices because such practices _____. a. deliver only short-term profits
b. create more competition
c. harm their business in the long run
d. are illegal
e. create long-term negative feelings among consumers (Answer: c; p. 498; Moderate)

9. Theodore Levitt claims that some advertising puffery is bound to occur and that it may even be desirable. People do not buy _____. a. pure functionality
b. solely because of the situation presented in the ad c. emotionally
d. features only
e. B or C
(Answer: a; p. 497; Challenging)

10. What is the third typical product criticism besides lack of quality and delivers little benefit? a. Priced too high.
b. Promotion is deceptive.
c. Lacks complete safety.
d. Lacks company backing of warranty.
e. Bad consumer connotations.
(Answer: c; p. 499; Easy)

11. Consumers Union, the nonprofit testing and information organization, has published _____ to assist the consumer in choosing products to purchase. a. Consumer Digest
b. Buyers Weekly
c. Home & Garden
d. Consumer Reports
e. Sports Illustrated
(Answer: d; p. 499; Easy)

12. Critics have charged that some companies follow a program of causing their products to need to be replaced before they actually should need replacement. What is this called? a. Product failure.

b. Short-term planning.
c. Planned obsolescence.
d. Nonfunctional warranties.
e. Expressed satisfaction.
(Answer: c; p. 499; Easy)

13. Marketers explain...
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