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Which of the following statements concerning cause marketing is most accurate?


A) The vast majority of consumers say they will switch to a brand that supports a good cause, provided the price and quality of the brands are equal.
B) The profits generated by cause marketing are usually based in "goodwill" rather than actual revenue.
C) The positive effects of cause marketing are significant during the promotion, but they lose their benefit almost immediately after the promotion runs its course.
D) Cause marketing rarely creates a point of difference for the firm that engages in this marketing practice.
E) Women are much more suspicious about the sincerity of cause marketing programs than men; therefore, their contributions are significantly less.

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

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In the 1960s, President Kennedy developed what is known as the Consumer Bill of Rights. This legislation represents limitations to the legal concept of ________ that was pervasive before that.


A) utilitarianism
B) self-regulation
C) economic espionage
D) consumerism
E) caveat emptor

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

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The idea that organizations are part of a larger society and are accountable to that society for their actions is referred to as


A) stakeholder responsibility.
B) social responsibility.
C) profit responsibility.
D) utilitarianism.
E) moral idealism.

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

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Mattel's Cabbage Patch Snacktime Kids doll was designed to eat plastic toys that were drawn into the doll's motorized mouth. However, despite extensive testing, the doll was found to "eat" the child's hair and was subsequently recalled and discontinued. Mattel discontinued the item because of consumers' right to


A) choose.
B) be informed.
C) be treated courteously.
D) safety.
E) happiness.

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

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Concern that Microsoft's 86 percent share of the PC operating system market was a __________ that limited consumers' Internet access to its Internet Explorer browser instead of offering them a choice of browser led to lawsuits and consent decrees from the U.S. Justice Department and investigations and fines from the European Union.


A) pure competition
B) an oligopoly
C) monopolistic competition
D) a pure monopoly
E) a megopoly

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

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Cause marketing refers to


A) when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.
B) 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.
C) marketing services provided at little or no cost for the purpose of promoting or supporting a worthy cause.
D) marketing efforts to produce, promote, and reclaim environmentally sensitive products.
E) when marketing actions that took place actually caused more harm than good.

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

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By 2015, which racial or ethnic group will have the greatest economic impact in the U.S. in terms of its buying power?


A) Asian Americans
B) Hispanics
C) African Americans
D) American Indian and other native populations
E) Indian immigrants (from India)

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

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Gross income refers to


A) the money that remains after paying for taxes and necessities.
B) the money deducted from a person's paycheck to pay for federal, state, and local taxes.
C) the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.
D) the total amount of money made by a single individual during his or her lifetime.
E) the total amount of money made in one year by a person, household, or family unit.

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

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A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as


A) deflation.
B) inflation.
C) prosperity.
D) a recession.
E) a depression.

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

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In 1998, President Clinton signed the Digital Millennium Copyright Act, which


A) limits access of children to online material considered to be inappropriate or harmful.
B) improves protection of copyrighted digital products.
C) allows the government to collect taxes if printed materials are sold online.
D) prevents the pirating of digital products that do not have a registered trademark.
E) allows anyone with access to a computer to publish original materials online and seek remuneration (pay) .

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

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The owners of Ben & Jerry's Homemade, Inc. adhere to the belief that the company should not harm the environment in any way but actually improve it. This is an example of __________.


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

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

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Business culture affects ethical behavior in competition. Two kinds of unethical behavior are most common:


A) economic espionage and bribery.
B) price fixing and copyright infringement.
C) bribery and extortion.
D) price fixing and economic espionage.
E) economic espionage and antitrust infractions.

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

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Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as __________ marketing programs.


A) panethnic
B) generational
C) cross-cultural
D) multicultural
E) regional

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

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When shopping on the Internet, most consumers assume their personal information is confidential. Subscribers to America Online (AOL) were upset when AOL proposed giving member information to its partners without telling them. This is related most directly to consumers' right to


A) be heard.
B) be treated courteously.
C) safety.
D) happiness.
E) be informed.

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

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The term that describes the change in the growth of the world's population is called the __________.


A) population contraction
B) population inversion
C) population migration
D) population explosion
E) population eruption

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

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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 is referred to as


A) social responsibility.
B) the triple-bottom line.
C) the marketing concept.
D) sustainability.
E) social entrepreneurship.

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

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Consumerism refers to


A) a movement of conspicuous consumption that began when the World War II ended.
B) conducting business in a way that protects the natural environment while making economic progress.
C) a collaborative effort between buyers and sellers to create an exchange where each benefit.
D) 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.
E) the grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.

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

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Disposable income refers to


A) the money that remains before paying for taxes and necessities.
B) the money deducted from a person's paycheck to pay for federal, state, and local taxes.
C) the total amount of money made by a single individual during his or her lifetime.
D) the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.
E) the money that is spent for necessities or charitable causes that is exempt from taxation.

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

Correct Answer

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Copyrights, trademarks, and patents are viewed as intellectual property. In the U.S., unauthorized use, reproduction, or distribution of intellectual property is illegal. Yet in China, copying enjoys a long tradition and does not carry a stigma. For example, copying a masterpiece was historically considered an art form in its own right. The difference between the countries shows that __________ affect(s) the perception of ethical behavior held in each.


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

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

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The purpose of __________ is to give the author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.


A) copyright law
B) patent law
C) trademark law
D) commercial law
E) antitrust law

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

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