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Two prominent personal moral philosophies that have direct bearing on marketing practice are


A) existentialism and pragmatism.
B) pragmatism and idealism.
C) moral idealism and utilitarianism.
D) social responsibility and personal ethics.
E) moral relativism and situational ethics.

F) A) and B)
G) A) and C)

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Society's values and standards that are enforceable in the courts are referred to as


A) situational ethics.
B) cultural norms.
C) industry practices.
D) laws.
E) the Consumer Bill of Rights.

F) D) and E)
G) All of the above

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Business culture affects ethical conduct both in the exchange relationship between sellers and buyers and in the


A) competitive behavior among sellers.
B) purchase behavior among buyers.
C) price, service, and product responsibility to the ultimate consumer.
D) accountability of buyers and sellers to federal and state regulators.
E) perception of ethical behavior as viewed by employers of business firms, not nonprofit organizations.

F) A) and B)
G) D) and E)

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All of the following statements about a person's moral philosophy are true except


A) moral philosophy cannot be learned through formal education.
B) moral philosophy is learned through the process of socialization with family.
C) moral philosophy is influenced by the corporate culture he/she is in.
D) moral philosophy is learned through the process of socialization with friends.
E) moral philosophy is influenced by the societal culture he/she is in.

F) B) and C)
G) A) and E)

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In the private purchase of a used or "pre-owned" car, __________ places the burden on the buyer to make sure the car is worth the purchase price, so it is advisable to take the car first to a mechanic. This is because once the transaction is complete the buyer will not receive a warranty or return option from the seller.


A) modus operandi
B) caveat emptor
C) de facto marketing
D) ćest la vie
E) anguis in herba

F) A) and E)
G) All of the above

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Greenwashing refers to


A) marketing efforts to produce, promote, and reclaim environmentally sensitive products.
B) conducting business in a way that protects the natural environment while making economic progress.
C) the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice.
D) the practice of deliberately concealing the mistakes that polluters make regarding the environmental disasters they perpetrated.
E) the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

F) A) and C)
G) B) and E)

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Although research shows consumers are sensitive to ecological issues, they may not be willing to purchase a given product or service solely on the basis of its environmental claims. They may (1) be unwilling to sacrifice convenience, and pay higher prices to protect the environment, and (2)


A) be unable to make an ecologically sound purchase because eco-friendly products are significantly less expensive, indicating that they are of lesser quality.
B) lack the knowledge to make informed decisions dealing with the purchase, use, and disposition of products.
C) believe that protecting the environment in one area actually can create disruptions in another area.
D) believe that ecological issues are still a matter of opinion even within the scientific community itself.
E) believe that public sentiment toward ecological issues has now reached a consensus-in today's economic downturn, jobs are more important than environmental protection issues.

F) A) and B)
G) A) and C)

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The 3M Co. voluntarily stopped the production of a chemical used as an ingredient in its Scotchgard fabric protector because minute amounts were found in the tissues of both animals and humans and the company feared there could be health effects at high levels. The moral philosophy that guided 3M in making this decision was


A) moral idealism.
B) utilitarianism.
C) green marketing.
D) stringent laws.
E) cause marketing.

F) B) and C)
G) B) and E)

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Which one of the following statements most accurately distinguishes between laws and ethics?


A) Laws reflect the beliefs of the majority of society while ethics reflect the beliefs of the minority of society.
B) Ethics deal with religious and moral beliefs while laws deal with social, economic, and environmental behaviors.
C) Ethics deal with internal (personal) issues while laws deal with external (social) issues.
D) There is no significant difference between laws and ethics; these terms can be used interchangeably.
E) Ethics deal with personal moral principles and values whereas laws are society's values and standards that are enforceable in the courts.

F) C) and E)
G) B) and C)

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The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as


A) economic espionage.
B) industrial espionage.
C) marketplace espionage.
D) industrial surveillance.
E) patent infringement.

F) D) and E)
G) B) and D)

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In most countries, copyrights, trademarks, and patents are viewed as intellectual property, and unauthorized use, reproduction, or distribution of intellectual property is illegal. In a few countries, however, copying enjoys a long tradition, does not carry a stigma, and is legal. For example, copying a masterpiece may be historically considered an art form in its own right. The difference between these two groups of countries shows that __________ affect(s) the view of ethical behavior held in each country.


A) business culture
B) industry practices
C) corporate culture
D) corporate expectations
E) societal culture and norms

F) A) and B)
G) A) and C)

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What is the difference between standard charitable contributions and cause marketing?

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A firm's standard charitable contributio...

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Nestlé's marketing of Good Start infant formula, sold by Nestlé's Carnation Co., promoted the product as hypoallergenic. However, some severely milk-allergic infants experienced serious side effects after using Good Start, including convulsive vomiting. A Nestlé vice president defended the claim and product, saying, "I don't understand why our product should work in 100 percent of cases. If we wanted to say it was foolproof, we would have called it allergy-free. We call it hypo-, or less, allergenic." Nestlé's actions exemplify which of the following philosophies?


A) existentialism
B) moral idealism
C) communism
D) socialism
E) utilitarianism

F) A) and B)
G) B) and D)

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Moral idealism refers to a personal moral philosophy that


A) believes that good will always triumph over evil.
B) follows the Golden Rule, "You should treat others as you would like others to treat you."
C) all human beings are basically good.
D) considers individual rights or duties as universal, regardless of the outcome.
E) believes in "the greatest good for the greatest number."

F) None of the above
G) B) and E)

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Two former sales representatives of a biotech company alleged the company strongly encouraged its sales force to search confidential medical records in dermatologist's offices in an attempt to find names of patients that would benefit from the use of one of the company's drugs to treat a skin disorder. After reporting this practice to the president of the company, one of the reps was fired and the other resigned after receiving a poor performance review. Both these two people sued the company, claiming they did not go along with the scheme because they objected to it as being unethical. These two sales representatives are


A) scabs.
B) cronies.
C) whistle-blowers.
D) contrarians.
E) ombudsmen.

F) A) and D)
G) B) and D)

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Ethical exchanges between sellers and buyers should result in


A) the seller making a profit at the expense of the buyer.
B) the buyer getting the product for the best price at the expense of the seller.
C) both parties to the exchange being better off after a transaction.
D) the seller offering buyers its products and services at cost, especially during a period of recession.
E) the buyer forming a strategic alliance with the seller.

F) None of the above
G) A) and B)

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At 3M, the "Pollution Prevention Pays" (3P) program has generated over 11,000 3P projects that eliminated more than 4 billion pounds of air, water, and solid-waste pollutants from the environment. This is an example of


A) proactive marketing.
B) green marketing.
C) consumerism.
D) an ecological code of ethics.
E) cause marketing.

F) B) and E)
G) B) and C)

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Conducting business in a way that protects the natural environment while making economic progress is referred to as


A) green marketing.
B) sustainable development.
C) stakeholder responsibility.
D) the marketing concept.
E) environmental marketing.

F) B) and C)
G) B) and E)

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All of the following are reasons for the state of perceived ethical business conduct except


A) a growing tendency for business decisions to be judged publicly by groups with different values and interests.
B) the increased pressure on businesspeople to make decisions in a society with diverse value systems.
C) an increase in the public's expectations of ethical business behavior.
D) ethical business conduct may have declined.
E) businesses are behaving more ethically during these difficult economic times.

F) D) and E)
G) A) and E)

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The set of values, ideas, and attitudes that is learned and shared among the members of an organization is referred to as


A) a mission statement.
B) core values.
C) the socialization process.
D) a code of ethics and conduct.
E) corporate culture.

F) B) and D)
G) C) and D)

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