kotler_chapter20
Chapter 20 Sustainable Marketing: Social Responsibility and Ethics 1) ________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.
A) The sustainable marketing concept
B) Innovation
C) Consumerism
D) Environmentalism
E) The strategic planning concept
Answer: A
Diff: 2 Page Ref: 585
AACSB: Communication
Skill: Concept
Objective: 20-1
2) All of the following are concepts that define the needs of consumers and/or businesses EXCEPT?
A) Marketing concept
B) Societal marketing concept
C) Strategic planning concept
D) Sustainable marketing concept
E) Consumer business concept
Answer: E
Diff: 1 Page Ref: 585
Skill: Concept
Objective: 20-1
3) The ________ is specifically focused on future company needs only.
A) societal marketing concept
B) strategic planning concept
C) sustainable marketing concept
D) marketing concept
E) consumer business concept
Answer: B
Diff: 1 Page Ref: 585
AACSB: Communication
Skill: Concept
Objective: 20-1
4) The ________ is specifically focused on the future welfare of consumers only.
A) strategic planning concept
B) sustainable marketing concept
C) societal marketing concept
D) consumer business concept
E) marketing concept
Answer: C
Diff: 1 Page Ref: 585
AACSB: Communication
Skill: Concept
Objective: 20-1
5) McDonald's "Plan to Win" strategy has added healthy food options to its menu, phased out traditional artery-clogging trans fats, launched a major multifaceted education campaign, and addressed environmental issues. "Plan to Win" best exemplifies which concept?
A) sustainable marketing concept
B) marketing concept
C) societal marketing concept
D) strategic planning concept
E) consumer business concept
Answer: A
Diff: 1 Page Ref: 585
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
6) Many critics charge that the American marketing system causes ________ to be higher than they would be under more "sensible" systems.
A) imports
B) exports
C) prices
D) product safety measures
E) employee morals
Answer: C
Diff: 1 Page Ref: 586
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
7) Critics charge that intermediaries ________.
A) are too few in number
B) are inefficient
C) provide only necessary services
D) underprice their services
E) are too competitive
Answer: B
Diff: 2 Page Ref: 586
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
8) 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) promotion cost
E) resale value
Answer: A
Diff: 1 Page Ref: 586
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
9) A heavily promoted brand of flu medicine sells for much more than a virtually identical
store-branded product. Critics would likely charge that promotion for the branded flu medicine adds only ________ to the product rather than functional value.
A) consistency
B) strength
C) psychological value
D) quality
E) informational value
Answer: C
Diff: 2 Page Ref: 586
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
10) Marketers respond to charges of high advertising and promotion costs that unnecessarily increase retail prices by arguing all of the following factors EXCEPT?
A) Advertising and promotion make consumers feel wealthy.
B) Advertising and promotion make consumers feel attractive.
C) Advertising and promotion adds quality to the product.
D) Advertising and promotion adds value by informing potential buyers of the availability and merits of a brand.
E) Advertising and promotion is necessary for a firm to match competitors' efforts.
Answer: C
Diff: 2 Page Ref: 586
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
11) Dan's Drugstore sells consumers medicine for twenty dollars that only costs two dollars to make. The store is guilty of ________.
A) deceptive promotion
B) deceptive packaging
C) false advertising
D) excessive markups
E) redlining
Answer: D
Diff: 2 Page Ref: 587
AACSB: Analytic Skills
Skill: Application
Objective: 20-2
12) Albatross Enterprises was accused of deceptive pricing. Which of the following explains what might have happened?
A) Albatross refused to advertise sale prices in the local paper.
B) Albatross lured customers to the store for a bargain that is out of stock.
C) Albatross advertised a large price reduction from a phony high retail list price.
D) Albatross misrepresented a product's features in an ad.
E) Albatross used misleading labeling.
Answer: C
Diff: 2 Page Ref: 587
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
13) Hart's Department Store was accused of deceptive promotion. Which of the following best explains what might have happened?
A) Hart's refused to advertise sale prices in the local paper.
B) Hart's lured customers to the store for a bargain that is out of stock.
C) Hart's advertised a large price reduction from a phony high retail list price.
D) Hart's used misleading labeling.
E) Hart's exaggerated its package contents through subtle design.
Answer: B
Diff: 2 Page Ref: 587
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
14) Marketers claim that consumers often don't understand the reasons for high markups. All of the following are reasons a pharmaceutical company claims they must markup prices EXCEPT ________.
A) to cover cost of purchasing
B) to cover cost of promoting
C) to cover cost of distributing existing medicines
D) to test new medicines
E) to gain a profit
Answer: E
Diff: 2 Page Ref: 587
Skill: Concept
Objective: 20-2
15) Deceptive practices fall into three groups: deceptive ________, deceptive ________, and deceptive ________.
A) product; pricing; promotion
B) pricing; promotion; placement
C) pricing; promotion; packaging
D) packaging; product; promotion
E) product; packaging; placement
Answer: C
Diff: 2 Page Ref: 587
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
16) 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; package contents
Answer: B
Diff: 2 Page Ref: 587
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
17) A major step in regulating "unfair or deceptive business acts and practices" was the enactment 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
Diff: 2 Page Ref: 587
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
18) Advertising "puffery" is a term for ________.
A) a straightforward promotional message
B) innocent exaggeration for effect
C) emotional appeals to consumers
D) subliminal appeals to consumers
E) value-added promotions
Answer: B
Diff: 2 Page Ref: 588
AACSB: Communication
Skill: Concept
Objective: 20-2
19) Which of the following advertising situations would LEAST likely be considered "puffery"?
A) Mr. Clean coming to a housewife's rescue
B) instantly toned thighs and legs as a result of using the Thigh Master for only 15 minutes
C) children immediately growing into attractive adults as a result of drinking milk
D) a retired couple drinking a vitamin and protein shake and then going bicycling
E) a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on the horizon
Answer: D
Diff: 2 Page Ref: 588
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
20) When critics claim that insurance, real estate, and used cars are sold, not bought, they are making accusations of the use of ________.
A) deceptive promotions
B) excessive markups
C) high-pressure selling
D) shoddy products
E) excessive materialism
Answer: C
Diff: 2 Page Ref: 588
AACSB: Reflective Thinking
Skill: Concept
Objective: 20-2
21) ________ persuades people to buy goods they had no thought of buying.
A) Sustainable marketing
B) High pressure selling
C) Strategic marketing
D) Redlining
E) Reverse redlining
Answer: B
Diff: 1 Page Ref: 588
AACSB: Communication
Skill: Concept
Objective: 20-2
22) The success of the Tom Dennis Ford dealership has been built largely on return customers and word-of-mouth recommendations. The majority of sales are made to customers who have purchased a vehicle at the dealership before or who know someone who had a positive experience purchasing a vehicle there. The sales force at the Tom Dennis Ford dealership most likely knows that using high-pressure selling does not work if the dealership wants to ________.
A) achieve short-term gains
B) move last year's models
C) obey local and federal law
D) build long-term relationships with customers
E) maintain a database
Answer: D
Diff: 2 Page Ref: 588
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
23) Recently, a class-action lawsuit was brought against McDonald's, charging that its food has contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue to point out the health dangers of many "fast food" menu items. These critics are concerned that the fast food industry has used ________.
A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products
Answer: E
Diff: 2 Page Ref: 588
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
24) Consumers Union, the nonprofit testing and information organization, publishes ________ to assist the consumer in choosing products and to encourage businesses to eliminate product flaws.
A) Consumer Digest
B) Buyers Weekly
C) Home & Garden
D) Consumer Reports
E) Sports Illustrated
Answer: D
Diff: 2 Page Ref: 589
Skill: Concept
Objective: 20-2
25) All of the following would be considered hazards in tested products EXCEPT ________.
A) electrical dangers in appliances
B) carbon monoxide poisoning from room heaters
C) injury risks from lawn mowers
D) faulty automobile design
E) sour-tasting medicine
Answer: E
Diff: 1 Page Ref: 589
Skill: Concept
Objective: 20-2
26) Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called?
A) product failure
B) short-term planning
C) planned obsolescence
D) nonfunctional warranty
E) expressed dissatisfaction
Answer: C
Diff: 2 Page Ref: 589
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
27) The following quote best describes ________. "The marvels of modern technology include the development of a soda can which, when discarded, will last forever, and a...car, which when properly cared for, will rust out in two or three years."
A) planned obsolescence
B) product failure
C) short-term planning
D) nonfunctional warranty
E) excessive markups
Answer: A
Diff: 2 Page Ref: 590
AACSB: Analytic Skills
Skill: Concept
Objective: 20-2
28) Planned obsolescence might involve all of the following EXCEPT ________.
A) the use of unsafe materials
B) producers continually changing consumer styles
C) the holding back of attractive functional features, then introducing them later to make older models obsolete
D) the use of materials that will rust sooner than they should
E) the use of components that will break soon after purchase
Answer: A
Diff: 1 Page Ref: 590
Skill: Concept
Objective: 20-2
29) Marketers respond to charges of planned obsolescence with all of the following EXCEPT?
A) Consumers like change.
B) No one is forced to buy the new product.
C) The product will eventually wear out anyway.
D) For most technical products, customers want the latest innovations.
E) Companies do not want to lose customers to other brands.
Answer: C
Diff: 2 Page Ref: 590
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
30) Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the "must-have" style in a variety of media. Trendy Teens could most easily be criticized for which of the following?
A) deceptive promotions
B) shoddy products
C) high-pressure selling
D) poor service to disadvantaged consumers
E) planned obsolescence
Answer: E
Diff: 2 Page Ref: 590
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
31) Critics claim that companies in the ________ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers.
A) car and truck
B) housing and construction
C) food and beverage
D) consumer electronics and computer
E) financial and entertainment
Answer: D
Diff: 2 Page Ref: 590
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
32) Critics who believe that the American marketing system poorly serves disadvantaged consumers claim that the ________ pay more for inferior goods.
A) wealthy
B) uneducated
C) urban poor
D) rural poor
E) elderly
Answer: C
Diff: 2 Page Ref: 590
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
33) The presence of ________ in low-income neighborhoods makes a big difference in keeping prices down.
A) malls
B) small stores
C) redlining companies
D) large national chain stores
E) factory outlets
Answer: D
Diff: 2 Page Ref: 590
Skill: Concept
Objective: 20-2
34) When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are likely to be accused of the discriminatory practice of ________.
A) embargo
B) licensing
C) redlining
D) puffery
E) scrambling merchandise
Answer: C
Diff: 2 Page Ref: 590
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
35) Critics claim that mortgage lenders used ________. Instead of staying away from people in poor urban areas, they targeted and exploited them by steering them toward subprime loans even though many qualified for safer fixed-rate loans.
A) reverse redlining
B) redlining
C) puffery
D) licensing
E) the push strategy
Answer: A
Diff: 2 Page Ref: 591
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
36) Several companies, some of them operating through the Internet, offer "paycheck advances." Consumers are encouraged to take out a loan against a paycheck they expect to receive in the near future. These short-term loans with high-interest rates, and high penalties for late payments, are often marketed to consumers who do not have traditional bank accounts. These companies could most easily be criticized for which of the following?
A) shoddy products
B) poor service to disadvantaged consumers
C) high-pressure selling
D) high advertising and promotion costs
E) excessive markups
Answer: B
Diff: 2 Page Ref: 590
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
37) Critics have charged that the marketing system urges too much interest in ________.
A) material possessions
B) the push strategy
C) meeting a quota
D) new product invention
E) entering the global market arena
Answer: A
Diff: 1 Page Ref: 591
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
38) Critics of the American economic marketing system have charged that marketers have created
a culture in which people are judged by what they ________.
A) are
B) own
C) do
D) eat
E) avoid
Answer: B
Diff: 1 Page Ref: 591
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
39) Bill Talen, also known as the Reverend Billy, leader of the Church of Stop Shopping, wants people to resist the temptation to shop. He annually leads a group of volunteers in his
post-Thanksgiving Buy Nothing Parade in front of Macy's in Manhattan. Bill Talen is criticizing the American marketing system for creating ________.
A) too few social goods
B) environmental problems
C) shoddy products
D) false wants and too much materialism
E) predatory competition
Answer: D
Diff: 2 Page Ref: 592
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
40) Businesses hire ________ firms to use mass media to create materialistic models of the good life.
A) Hollywood
B) Broadway
C) Madison Avenue
D) Fifth Avenue
E) Michigan Avenue
Answer: C
Diff: 3 Page Ref: 592
AACSB: Communication
Skill: Concept
Objective: 20-2
41) Critics say marketing is seen as benefiting ________ more than ________.
A) consumers; industry
B) industry; consumers
C) stores; manufacturers
D) exporters; importers
E) independent sellers; chain stores
Answer: B
Diff: 2 Page Ref: 592
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
42) Our wants and values are LEAST influenced by which of the following?
A) family
B) education
C) religion
D) cultural background
E) intermediaries
Answer: E
Diff: 2 Page Ref: 592
Skill: Concept
Objective: 20-2
43) The overselling of private goods results in ________, such as cars causing traffic jams, air pollution, injuries, and deaths.
A) cultural pollution
B) misdirected funding
C) social costs
D) materialism
E) opportunity costs
Answer: C
Diff: 2 Page Ref: 592-593
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
44) To restore the balance between private and public goods, producers could be required to bear the full ________ costs of their operations.
A) promotional
B) cultural
C) environmental
D) social
E) safety
Answer: D
Diff: 3 Page Ref: 593
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
45) For cars, "social costs" include all of the following EXCEPT ________.
A) traffic congestion
B) air pollution
C) gasoline shortages
D) congestion tolls
E) traffic accidents
Answer: D
Diff: 2 Page Ref: 593
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
46) TerraPass is a company that offers consumers the opportunity to buy carbon offsets, which are contributions to projects that combat global warming by reducing carbon emissions. TerraPass offers contribution packages for driving, flying, and home energy use. Through TerraPass, consumers can pay some of the ________ costs of their private goods and services.
A) promotional
B) safety
C) health
D) distribution
E) social
Answer: E
Diff: 2 Page Ref: 593
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
47) Cultural pollution could be referred to as ________.
A) commercial noise
B) air pollution
C) language barriers
D) a marketer's inability to identify a target market
E) zipping or zapping
Answer: A
Diff: 2 Page Ref: 593
AACSB: Reflective Thinking
Skill: Concept
Objective: 20-2
48) All of the following are examples of cultural pollution EXCEPT ________.
A) commercials during serious programs
B) ads in magazines
C) street signs in an urban area
D) billboards marring beautiful scenery
E) spam in an e-mail inbox
Answer: C
Diff: 2 Page Ref: 593
Skill: Concept
Objective: 20-2
49) Karl Lagaros, a marketing critic, is concerned about the pervasiveness about marketing. He points to advertising messages everywhere, from Web sites and e-mails to unwanted direct mail and catalogs to television commercials and product tie-ins to billboards and store signage. Karl is concerned about ________.
A) high advertising and promotion costs
B) cultural pollution
C) deceptive practices
D) false wants and too much materialism
E) the balance between private goods and social goods
Answer: B
Diff: 2 Page Ref: 593
AACSB: Reflective Thinking
Skill: Application
Objective: 20-2
50) In response to charges of ________, marketers point out that advertising makes much of television and radio free to users and also keeps down the cost of magazines and newspapers.
A) too few social goods
B) creating false wants
C) creating too much materialism
D) high promotion costs
E) cultural pollution
Answer: E
Diff: 2 Page Ref: 593
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
51) Cultural pollution continually pollutes people's minds with all of the following messages EXCEPT ________.
A) materialism
B) sex
C) power
D) religion
E) status
Answer: D
Diff: 2 Page Ref: 593
AACSB: Analytic Skills
Skill: Concept
Objective: 20-2
52) Large marketing companies can use patents and heavy promotion spending to ________.
A) acquire smaller companies
B) bear the social costs of their operations
C) set up barriers for others wanting to enter the industry
D) achieve economies of scale
E) offset cultural pollution
Answer: C
Diff: 3 Page Ref: 594
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
53) All of the following are potential advantages of acquisition EXCEPT?
A) The acquiring company can gain economies of scale.
B) Acquisitions require little government oversight.
C) An acquiring company may improve the efficiency of an acquired company.
D) An industry might become more competitive after an acquisition.
E) The acquisition may result in lower costs, leading to lower prices for consumers.
Answer: B
Diff: 2 Page Ref: 594
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
54) Setting prices below cost, threatening to cut off business with suppliers, and discouraging the purchase of a competitor's products are all examples of ________.
A) routine competition
B) excessive materialism
C) predatory competition
D) acquisitions
E) barriers to entering a market
Answer: C
Diff: 2 Page Ref: 594
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-2
55) The two major movements to keep business in line are environmentalism and ________.
A) consumerism
B) protectionism
C) antimonopoly legislation
D) regulating interstate commerce
E) innovation
Answer: A
Diff: 1 Page Ref: 595
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-3
56) The first organized consumer movement in the United States took place in the early 1900s. It was fueled by all of the following conditions EXCEPT ________.
A) rising prices
B) conditions in the meat industry
C) unsafe merchandise
D) scandals in the drug industry
E) Upton Sinclair's writing
Answer: C
Diff: 2 Page Ref: 595
Skill: Concept
Objective: 20-3
57) Ralph Nader is most closely associated with which of the following?
A) the consumerism movement of the 1960s
B) the environmentalism movement of the 1960s and 1970s
C) the current wave of environmentalism
D) enlightened marketing
E) consumer-oriented marketing
Answer: A
Diff: 3 Page Ref: 595
Skill: Concept
Objective: 20-3
58) ________ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.
A) Environmentalism
B) The Bill of Rights
C) Grassroots politics
D) Consumerism
E) The Human Relations Movement
Answer: D
Diff: 1 Page Ref: 595
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-3
59) All of the following are traditional sellers' rights EXCEPT ________.
A) the right to charge any price for the product
B) the right to spend any amount to promote the product
C) the right to promote any product to any audience
D) the right to use any buying incentive programs
E) the right to introduce any product in any size and style
Answer: C
Diff: 3 Page Ref: 595
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-3
60) Consumer advocates call for all of the following additional consumer rights EXCEPT
________.
A) the right to be protected from unwanted marketing messages
B) the right to be well informed about important product aspects
C) the right to be protected against questionable products and marketing practices
D) the right to influence marketing practices in ways that will improve the quality of life
E) the right to influence products in ways that will improve the quality of life
Answer: A
Diff: 3 Page Ref: 595-596
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-3
61) Proposals related to the consumer's right to ________ include controlling the ingredients that go into certain products and packaging as well as reducing the level of advertising "noise."
A) not buy a product that is offered for sale
B) expect the product to perform as claimed
C) be well informed about important aspects of the product
D) be protected against questionable marketing practices
E) influence products and marketing practices in ways that will improve the "quality of life" Answer: E
Diff: 2 Page Ref: 596
AACSB: Ethical Reasoning
Skill: Concept
Objective: 20-3
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