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Provide concrete examples for the four classifications of marketing decisions according to ethical and legal relationships.

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Answers will vary,but they sho...

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The obligation organizations have to the preservation of the ecological environment and to the general public is referred to as


A) community responsibility.
B) stakeholder responsibility.
C) benefit marketing.
D) societal responsibility.
E) profit responsibility.

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

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A code of ethics is a formal statement of ethical principles and


A) legal restrictions.
B) rules of conduct.
C) cultural values.
D) core values.
E) moral laws.

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

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Volkswagen AG was widely criticized for its failure to practice ________ when it employed sophisticated software on selected Volkswagen,Audi,and Porsche models that disguised the amount of smog pollutants emitted from selected cars.


A) moral idealism
B) stakeholder responsibility
C) utilitarianism
D) cause marketing
E) profit responsibility

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

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An owner of a small publishing company allowed a friend who was starting a machine embroidery business to load the publishing company's copy of Microsoft Word onto the friend's computer.This activity is


A) both legal and ethical.
B) caveat emptor.
C) illegal but ethical.
D) both illegal and unethical.
E) sanctioned by the Business Software Alliance since only one copy was transferred.

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

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A poll by a public-opinion research firm found that 67 percent of North Americans are willing to boycott products on ethical grounds.This survey did not ask if the person who was acting on ethical grounds would first see if the boycott was based on facts.Which of the following statements describes a conclusion that should be drawn from this information?


A) If you are an ethical person,you should act according to your instincts.
B) Realistically speaking,in order to stay in business,all businesses must occasionally behave unethically.
C) All businesses will act unethically unless forced by consumers to act morally.
D) There is nothing consumers can do to stop unethical business activities.
E) Boycotting a product without knowing the facts can be viewed as unethical.

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

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MasterCard International links usage of its card with fund-raising for institutions that combat cancer,heart disease,child abuse,and muscular dystrophy.MasterCard gives a modest percentage of charges from its credit card charges to the institutions.What is this called and how does it affect cardholders' behavior?

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This practice is called cause marketing,...

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Profit responsibility refers to


A) the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.
B) the view that an organization has an obligation to those who can affect the achievement of its objectives.
C) the concept that no expansion or additional research and development will occur until a company is making a profit.
D) the idea that organizations are part of a larger society and are accountable to that society for their actions.
E) the duty of a firm to maximize profits for its owners or stockholders.

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

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Describe the difference between ethics and laws.

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Ethics are the moral principles and valu...

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Bribery is most likely to occur in situations when


A) industries experience little competition.
B) the country has reached a high level of economic development.
C) industries are high-tech in nature.
D) a monopoly exists in the industry.
E) the country is facing economic and political turmoil.

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

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Which of the following statements about sustainable development is most accurate?


A) A company that makes its furniture from rare tropical woods is practicing sustainable development.
B) Currently,sustainable development is a luxury that only large multinational companies can engage in.
C) Sustainable development is achieved when a firm's sales growth rate increases an average of 1 to 2 percent a year for a period of at least five years.
D) A mining company that replants native vegetation after mining operations cease practices sustainable development.
E) Unfortunately,only a small number of consumers care whether a company practices sustainable development.

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

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All of the following are examples of economic espionage except which?


A) electronic hacking
B) trespassing
C) bribery
D) searching a competitor's trash
E) noncompete clause employment contract violations

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

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A Toyota dealership in British Columbia,Canada,donated $50 to the Make-A-Wish Foundation of Canada for each Toyota purchased during a particular month.This is an example of how a small business can engage in


A) philanthropic marketing.
B) cause marketing.
C) marketing altruism.
D) public relations marketing.
E) societal marketing.

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

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Copyrights,trademarks,and patents are ________,so unauthorized use is illegal.


A) public goods
B) intellectual property
C) rights granted to individuals or organizations by the WTO for a period of five years
D) limited to books,music,and software
E) subject to ISO 14000 requirements

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

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Economic espionage includes such activities as


A) two firms hiring the same musician to write their company jingle.
B) hiring people who worked in an executive capacity at a competitor's firm,especially if they didn't have a noncompete clause.
C) offering to accept all competitors' coupons,making their effectiveness as a promotional tool negligible.
D) searching through a competitor's trash.
E) marrying someone who works for a competitor in an executive position.

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

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Which of the following statements best describes the activities of a whistle-blower?


A) Mattel issued a statement apologizing for the 150 of the 10 million Power Wheels cars and trucks the company sold that had caught on fire.
B) Mattel research engineers proved that the spate of fires in the company's Power Wheels cars and trucks was the result of consumers' tinkering with the engine.
C) A former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and slightly burned its rider.
D) The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the 10 million units that had been sold.
E) A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use.

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

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Social responsibility refers to


A) a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior.
B) a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal,state,and local levels.
C) a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the U.S.Constitution's Bill of Rights.
D) the view that organizations are part of a larger society and are accountable to that society for their actions.
E) a personal moral philosophy that considers individual rights or duties as universal,regardless of the outcome.

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

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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 D)
G) B) and D)

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Green marketing refers to


A) the purchasing of products from producers whose farming practices are Fair Trade certified.
B) the marketing efforts taken by new and smaller companies that lack both the experience and resources of their major competitors.
C) the marketing efforts to produce,promote,and reclaim environmentally sensitive products.
D) the marketing of products that have in no way been altered or reprocessed by artificial means.
E) the marketing of those products made exclusively from recycled materials.

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

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China is the world's largest tobacco-producing country and has 300 million smokers.Approximately 1 million Chinese die annually from smoking-related illnesses.This figure is expected to rise to more than 3 million by 2050.China restricts tobacco imports.U.S.trade negotiators advocate free trade,thus allowing U.S.tobacco companies to market their products in China.The U.S.trade negotiators are acting


A) ethically but illegally.
B) ethically and legally.
C) unethically and illegally.
D) unethically but legally.
E) in ways that cannot be determined by the information provided.

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

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