Consumer Behavior, 10e (Schiffman/Kanuk) Chapter 16 Marketing Ethics and Social Responsibility 1) The marketing concept involves A) filling the marketplace with products that can be produced and sold cheaply B) fulfilling the needs of target consumer markets more effectively than competitors C) endeavoring to satisfy the needs and wants of the target market in ways that preserve and enhance the well-being of consumers and society as a whole D) crafting messages to consumers that get them to buy products that not meet their needs E) consumers behaving completely rationally and maximizing their value when considering a purchase Answer: B Diff: Page Ref: 496 AACSB: Analytic Skills Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 2) The societal marketing concept involves A) endeavoring to satisfy the needs and wants of the target market in ways that preserve and enhance the well-being of consumers and society as a whole B) fulfilling the needs of target consumer markets more effectively than competitors C) filling the marketplace with products that can be produced and sold cheaply D) crafting messages to consumers that get them to buy products that not meet their needs E) consumers behaving completely rationally and maximizing their value when considering a purchase Answer: A Diff: Page Ref: 496 AACSB: Reflective Thinking Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 3) Whereas the focuses on fulfilling the needs of target consumer markets more effectively than competitors, the requires marketers to that in a way that preserves and enhances the well-being of consumers and society as a whole A) marketing concept; societal marketing concept B) consumer marketing concept; societal marketing concept C) production concept; marketing concept D) societal marketing concept; marketing concept E) product concept; societal marketing concept Answer: A Diff: Page Ref: 496 AACSB: Reflective Thinking Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers ScholarStock 4) The balances the needs of society with the needs of individuals and marketing organizations A) marketing concept B) sales concept C) production concept D) targeting concept E) societal marketing concept Answer: E Diff: Page Ref: 496 AACSB: Reflective Thinking Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 5) According to the societal marketing concept, A) fast-food restaurants should develop foods that contain less fat and starch but more nutrients B) marketers should advertise food to young people in ways that encourage overeating C) marketers should use professional athletes in liquor and tobacco advertisements D) marketers should teach young drivers to get the most out of their cars by driving them as fast as possible E) toy manufacturers should manufacture their products out of the cheapest materials possible, regardless of where those materials come from or what potential contaminants they may contain Answer: A Diff: Page Ref: 496 AACSB: Ethical Reasoning Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 6) A serious deterrent to widespread implementation of the societal marketing concept is A) the short-term orientation embraced by most business executives in pursuing increased market share and quick profits B) the long-term focus of most business executives, who are primarily focused on the long-term viability of the business C) aggressive action taken by consumer advocacy groups D) the prevailing practices of very specific consumer segmentation and targeting E) the prevalence of digital media and continuing shift of marketing dollars from old media to digital Answer: A Diff: Page Ref: 96 AACSB: Reflective Thinking Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers ScholarStock 7) The short-term orientation embraced by most business executives stems from A) short consumer memory of good corporate behavior B) the short-term orientation of the consumers they target C) the fact that managerial performance is usually evaluated on the basis of short-term results D) the fast-paced nature of media flows in today's hyper-stimulated environment E) the increasing importance of public relations as a vehicle for communicating with consumers Answer: C Diff: Page Ref: 496 AACSB: Analytic Skills Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 8) The societal marketing concept advocates a A) long-term perspective B) short-term perspective C) medium-term perspective D) 6-month outlook E) 12-month outlook Answer: A Diff: Page Ref: 498 AACSB: Analytic Skills Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 9) Industry-wide self-regulation is in marketers' best interests in that A) it is the only legal form of corporate collusion that provides sustainable economic benefit B) it is required by various pieces of legislation C) it deters government from imposing its own regulations on industries D) enforcement of such regulations is likely to be stricter than governmental regulation E) consumers rarely complain about companies that they believe are part of such self-regulatory schemes Answer: C Diff: Page Ref: 498 AACSB: Reflective Thinking Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers ScholarStock 10) Advertising to children is subject to self-regulation according to guidelines developed by A) the Federal Trade Commission B) the Federal Communications Commission C) the Children's Advertising Review Unit D) the Department of Health and Human Services E) Commercial Alert Answer: C Diff: Page Ref: 498 Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 11) Parents with complaints about advertising to children should contact A) the Department of Homeland Security B) the Federal Communications Commission C) the Children's Advertising Review Unit D) the Department of Health and Human Services E) Commercial Alert Answer: C Diff: Page Ref: 498 Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 12) According to , children can easily form associations between stimuli and outcomes A) Maslow's Hierarchy of Needs B) Freudian theory C) Pavlov's experiments D) attribution theory E) stimulus-response theory Answer: E Diff: Page Ref: 498 Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers ScholarStock 13) The majority of advertisements for appear during children's programs A) restaurants B) audio entertainment C) sweetened drinks D) public service announcements E) desserts and sweets Answer: E Diff: Page Ref: 500, Figure 16.2 Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 14) The majority of advertisements for appear during nonchildren's programs A) games, toys, and hobbies B) cereal C) snacks D) dairy products E) restaurants and fast food Answer: E Diff: Page Ref: 500, Figure 16.2 Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 15) Advertisements for are the most prevalent ads played during children's programming A) games, toys, and hobbies B) cereal C) snacks D) dairy products E) restaurants and fast food Answer: A Diff: Page Ref: 500, Figure 16.2 Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers ScholarStock 16) According to the model of communication, large audiences are reached with the same electronic or print messages A) narrowcasting B) simulcasting C) microcasting D) open casting E) broadcasting Answer: E Diff: Page Ref: 502 AACSB: Analytic Skills Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 17) is a technique that allows marketers to send precisely directed messages to very small audiences on an ongoing basis A) Narrowcasting B) Broadcasting C) Simulcasting D) Microcasting E) Open casting Answer: A Diff: Page Ref: 502 AACSB: Analytic Skills Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 18) When Company X obtains a list of left-handed people earning over 100K per year who own pets and are of Hispanic origin and develops and delivers a highly targeted and persuasive message designed specifically for this very narrowly defined consumer group, Company X is engaging in A) narrowcasting B) broadcasting C) simulcasting D) microcasting E) open casting Answer: A Diff: Page Ref: 502 AACSB: Analytic Skills Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers ScholarStock 19) Over the course of their interaction with The Knot, a specialty web site for people planning their weddings, future brides and grooms record the home towns, the planned location of the wedding, the wedding date, the ceremony denomination, and the wedding budget The Knot then provides this information to its advertisers, who are able to tailor their advertising messages to the specific brides and grooms based on what these advertisers already know about them This is an example of A) narrowcasting B) broadcasting C) simulcasting D) microcasting E) open casting Answer: A Diff: Page Ref: 502 Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 20) When Company Y buys radio time on all the local radio stations and plays the same advertisement on all of them, Company Y is engaging in A) narrowcasting B) broadcasting C) simulcasting D) microcasting E) open casting Answer: B Diff: Page Ref: 502 AACSB: Analytic Skills Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 21) When Klondike relaunched its "What Would You Do For A Klondike Bar" campaign in 2008, it broadcast its television ads during sporting events and prime time shows This is an example of A) narrowcasting B) broadcasting C) simulcasting D) microcasting E) open casting Answer: B Diff: Page Ref: 502 Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers ScholarStock 22) Direct-to-consumer pharmaceutical advertising has increased the consumption of numerous categories of medications Consumers confirm that they receive most of the information about these medications from TV commercials rather than from their physicians In response, the pharmaceutical industry has developed voluntary restrictions regarding this marketing method Why have they done this? A) to slow sales and reduce the incidence of out-of-stock situations B) to avoid government regulation of their marketing practices C) to improve consumers' perceptions of their companies D) to save money E) to increase sales Answer: B Diff: Page Ref: 501 AACSB: Reflective Thinking Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 23) To combat fast-forwarding by consumers who wish to avoid TV commercials, marketers are increasingly turning to , where the line between television shows and ads is virtually nonexistent A) broadcast media B) product placements C) buzz marketing D) advertorials E) infomercials Answer: B Diff: Page Ref: 504 AACSB: Reflective Thinking Skill: Concept Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 24) In ABC's Extreme Makeover: Home Edition, Sears' Kenmore appliances and Craftsman tools are the "stars" of the show This is an example of A) product placement B) buzz marketing C) broadcast media D) an advertorial E) an infomercial Answer: A Diff: Page Ref: 504 Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them ScholarStock 25) The judges of American Idol always have a Coca-Cola within easy reach (and view) This is an example of A) broadcast media B) buzz marketing C) product placement D) an advertorial E) an infomercial Answer: C Diff: Page Ref: 504 Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 26) While forecasts indicate that companies are going to steadily increase expenditures on branded entertainment, is lobbying for legislation that will require advertisers to disclose upfront ads that are designed as product placements A) the Children's Advertising Review Unit B) the Federal Trade Commission C) Commercial Alert D) the Federal Communications Commission E) the Department of Health and Human Services Answer: C Diff: Page Ref: 504 Skill: Concept Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 27) Marketers are beginning to blend promotion and program content by positioning a TV commercial so close to the storyline of a program that viewers are unaware they are watching an advertisement until they are well into it Because this was an important factor in advertising to children, has strictly limited the use of this technique A) the Children's Advertising Review Unit B) the Federal Trade Commission C) Commercial Alert D) the Department of Health and Human Services E) the Federal Communications Commission Answer: B Diff: Page Ref: 504 AACSB: Analytic Skills Skill: Concept Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them ScholarStock 28) Print ads that closely resemble editorial matter are known as A) broadcast media B) an advertorial C) buzz marketing D) product placement E) an infomercial Answer: B Diff: Page Ref: 504 Skill: Concept Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 29) When the government of a country attempts to attract businesses by buying several pages in a well-respected news magazine and fills them with what appears to be a news article on the strength of the country's economy, the stability of its government, and the business-friendly nature of its legislation, this is an example of A) broadcast media B) an advertorial C) buzz marketing D) product placement E) an infomercial Answer: B Diff: Page Ref: 504 AACSB: Communication Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 30) Pomona Fruits, a tropical fruit grower, wants to raise awareness of the health benefits of pineapples in order to spur sales of its produce Pomona buys a full page in a women's health magazine and pays a nutritionist to write a complementary article highlighting tropical fruits, including pineapples This is an example of A) broadcast media B) an advertorial C) buzz marketing D) product placement E) an infomercial Answer: B Diff: Page Ref: 504 AACSB: Communication Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 10 ScholarStock 59) When Fizzy Cola advertizes that it will donate a portion of all the proceeds of cola packaged in its Olympic can to the Special Olympics, it is engaging in A) buzz marketing B) stimulus generalization C) viral marketing D) deceptive advertising E) cause-related marketing Answer: E Diff: Page Ref: 511 AACSB: Analytic Skills Skill: Concept Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 60) When People's Trust Bank advertises its involvement in free consumer credit training to help low-income families manage their earnings and qualify for mortgages, People's Trust is engaging in A) advocating a socially beneficial cause B) cause-related marketing C) viral marketing D) green marketing E) buzz marketing Answer: A Diff: Page Ref: 511 AACSB: Reflective Thinking Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing TOASTER MINI CASE: Ruth's son is five years old He recently saw a TV commercial for KoolStuf toaster pastries that showed Oreo cookies going into a toaster and popping out as Kool-Stuf pastries He proceeded to put Oreo cookies into the toaster in his kitchen at home and, when they didn't pop out, tried to get them out with a pair of scissors Ruth feels that the advertisement is dangerous and should be changed 61) In the TOASTER MINI CASE, if Ruth wants to complain to the self-regulatory organization that monitors these types of advertisements, she should address her complaint to A) the Federal Communication Commission B) Commercial Alert C) the Public Broadcasting System D) the Federal Trade Commission E) the Children's ADvertising Review Unit Answer: E Diff: Page Ref: 498 Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 21 ScholarStock 62) In the TOASTER MINI CASE, Ruth's son believed that he could put an Oreo cookie in the toaster and it would pop out as a Kool-Stuf pastry because, according to , children easily form associations between stimuli and outcomes A) the theory of reasoned action B) equity theory C) Maslow's Hierarchy of Needs D) economic consumption theory E) the stimulus-response theory Answer: E Diff: Page Ref: 498 AACSB: Analytic Skills Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 63) In the TOASTER MINI CASE, Ruth's son demonstrates children's high aptitude for A) observational learning B) technical learning C) cognitive learning D) apprehensive learning E) evoked learning Answer: A Diff: Page Ref: 498 AACSB: Analytic Skills Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 64) In the TOASTER MINI CASE, which of the following CARU guidelines does the Kool-Stuf manufacturer violate? A) Product presentations must not encourage children to pressure their parents to buy the products advertised B) Ads must not compel children to feel that ownership of a given product will make them more accepted by peers C) Product claims must not exaggerate the benefits of the product D) Product presentations must not exploit the child's imagination or create unrealistic expectations E) Ads must not deliberately attempt to confuse children and make them believe that the advertisement is actually the television show they are watching Answer: D Diff: Page Ref: 498 AACSB: Ethical Reasoning Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 22 ScholarStock 65) In the TOASTER MINI CASE, which of the following is most likely true of Ruth's son? A) He is better-equipped to differentiate between ads and regular programming, even if characters from the show he is currently watching appear in the ad B) He is more likely than an adult to imitate the behavior he sees in an advertisement C) He is likely to see significantly fewer ads for snack foods aired during his programming than does the average adult D) He is likely to be more skeptical of advertising than an adult would be E) He will always recognize the difference between factual claims and puffery in advertising Answer: B Diff: Page Ref: 498 AACSB: Ethical Reasoning Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers CLEANER MINI CASE: Oopsy All Gone is a new super cleaning powder that, when mixed with water, will remove the toughest stains from carpets and upholstery The manufacturer, Clean Brite, has taken out a 30-minute spot on a local television channel and is planning on airing a mini-program on the harmful chemicals present in most household cleaners, while highlighting the mild ingredients in Oopsy All Gone that are tough on stains but soft on skin Clean Brite has also arranged for Oopsy All Gone to appear in a popular sit-com, where the main character spills a drink on his neat-freak friend's white couch while housesitting for the weekend 66) In the CLEANER MINI CASE, the advertising methods used are examples of A) disguised format B) disguised communicator C) disguised user D) disguised consumer E) disguised evaluation Answer: A Diff: Page Ref: 506, Table 16.3 Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 23 ScholarStock 67) In the CLEANER MINI CASE, the 30-minute television spot is an example of A) buzz marketing B) viral marketing C) product placement D) an advertorial E) urgent ad-formation Answer: D Diff: Page Ref: 506, Table 16.3 AACSB: Reflective Thinking Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 68) In the CLEANER MINI CASE, the 30-minute television spot that is made to look like an expose on the cleaning product industry is an example of A) advocating a socially beneficial cause B) cause-related marketing C) green marketing D) covert marketing E) urgent ad-formation Answer: D Diff: Page Ref: 505 AACSB: Reflective Thinking Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 69) In the CLEANER MINI CASE, when Oopsy All Gone appears in a popular sit-com, this is an example of A) advocating a socially beneficial cause B) buzz marketing C) green marketing D) product placement E) urgent ad-formation Answer: D Diff: Page Ref: 504 Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 24 ScholarStock 70) In the CLEANER MINI CASE, the 30-minute Oopsy All Gone spot delivers the same message to all viewers This is an example of the model of marketing A) simulcasting B) narrowcasting C) open casting D) broadcasting E) widecasting Answer: D Diff: Page Ref: 500 Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers ECOLITE MINI CASE: Ecolite is a new manufacturer of compact cars that run exclusively on battery power and require no fossil fuels Its advertising focuses on the amount of carbon emissions that the Ecolite driver will avoid emitting compared to comparable compact cars, and the positive impact that will have on the environment Ecolite has also put together a SuperGreen add-on package that includes additional interior features, a portion of the proceeds of which are donated to the Arbor Day Foundation Ecolite has decided to advertise its new vehicle by offering them to car rental agencies at a discounted price to enable people to drive the cars risk free and to get them seen on the street Ecolite has also paid models to drive the cars around major metropolitan areas, parking them briefly in grocery stores like Trader Joe's and Whole Foods, where its target customers shop, and to engage potentially interested consumers in conversation about how great the new car is 71) In the ECOLITE MINI CASE, Ecolite's advertising surrounding carbon emissions is an example of A) covert advertising B) green marketing C) advertainment D) buzz marketing E) cause-related marketing Answer: B Diff: Page Ref: 511 Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 25 ScholarStock 72) In the ECOLITE MINI CASE, the SuperGreen package is an example of A) covert advertising B) green marketing C) advertainment D) cause-related marketing E) buzz marketing Answer: D Diff: Page Ref: 511 AACSB: Reflective Thinking Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 73) In the ECOLITE MINI CASE, by making Ecolite electric cars available for environmentallyconscious consumers to try out through the rentals, Ecolite is attempting to show consumers that any potentially negative preconceived notions they have about electric cars are not accurate They are targeting consumers at the stage of behavior change A) evaluation B) maintenance C) contemplation D) action E) preparation Answer: C Diff: Page Ref: 515, Table 16.5A Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 74) In the ECOLITE MINI CASE, the models that Ecolite has hired to drive the car around and talk to average consumers about how great it is are examples of A) advertainment B) urgent ad-formation C) posers D) product placement E) advertorials Answer: C Diff: Page Ref: 506, Table 16.3 Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 26 ScholarStock 75) In the ECOLITE MINI CASE, the models that Ecolite has hired to drive the car around and talk to average consumers about how great it is are an example a marketing program with a A) disguised format B) disguised communicator C) disguised user D) disguised consumer E) disguised evaluation Answer: A Diff: Page Ref: 506, Table 16.3 Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 76) The marketing concept as we know it is always consistent with society's well-being and best interests Answer: FALSE Diff: Page Ref: 496 AACSB: Ethical Reasoning Skill: Concept Objective: 16.1: Understand the meaning of marketing ethics and social responsibility 77) The societal marketing concept proposes that all companies would be better off in a stronger, healthier society, and that companies that incorporate ethical behavior and social responsibility in all of their business dealings attract and maintain loyal consumer support over the long term Answer: TRUE Diff: Page Ref: 498 AACSB: Reflective Thinking Skill: Concept Objective: 16.1: Understand the meaning of marketing ethics and social responsibility 78) Socially responsible activities improve a company's image among consumers, stockholders, the financial community, and other relevant publics Answer: TRUE Diff: Page Ref: 498 AACSB: Reflective Thinking Skill: Concept Objective: 16.1: Understand the meaning of marketing ethics and social responsibility 79) Perceptions of a company's lack of social responsibility or unethical marketing strategies rarely has a negative effect on consumer purchase decisions Answer: FALSE Diff: Page Ref: 498 Skill: Concept Objective: 16.1: Understand the meaning of marketing ethics and social responsibility 27 ScholarStock 80) Children are less likely than adults to imitate the behavior they see on TV with little or no evaluative judgment Answer: FALSE Diff: Page Ref: 498 AACSB: Reflective Thinking Skill: Application Objective: 16.1: Understand the meaning of marketing ethics and social responsibility 81) There is a consensus that even if children understand the purpose of promotional messages, marketers must take special care in advertising to them because of the amount of time kids spend viewing TV and online Answer: TRUE Diff: Page Ref: 499 AACSB: Ethical Reasoning Skill: Concept Objective: 16.1: Understand the meaning of marketing ethics and social responsibility 82) Consumers are very open to the installation of digital "cookies" onto their computers, regardless of the consumers' degree of online experience and privacy concern Answer: FALSE Diff: Page Ref: 503 AACSB: Reflective Thinking Skill: Concept Objective: 16.1: Understand the meaning of marketing ethics and social responsibility 83) Marketers increasingly use techniques that blur the distinction between figure and ground, which makes it easier for consumers to clearly distinguish advertising from entertainment content Answer: FALSE Diff: Page Ref: 504 AACSB: Communication Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 84) As a result of the increasing criticism directed at product placements as a form of masked advertising, companies are forecast to steadily decrease expenditures on branded entertainment Answer: FALSE Diff: Page Ref: 504 AACSB: Analytic Skills Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 28 ScholarStock 85) People are often surprised at how much they consume, showing that they may have been influenced at a basic or perceptual level Answer: TRUE Diff: Page Ref: 505, Table 16.2 AACSB: Analytic Skills Skill: Concept Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 86) Large inventory levels in one's home pantry could increase the quantity of food one believes is appropriate for a meal Answer: FALSE Diff: Page Ref: 505, Table 16.2 AACSB: Reflective Thinking Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 87) Consumers may be able to control consumption by organizing less-structured offerings Answer: TRUE Diff: Page Ref: 505, Table 16.2 AACSB: Reflective Thinking Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 88) It is argued that stealth marketing will result in increased consumer acceptance of product information Answer: FALSE Diff: Page Ref: 505 AACSB: Reflective Thinking Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 89) Objectionable ads always arise from the negative intentions of marketers Answer: FALSE Diff: Page Ref: 506 AACSB: Ethical Reasoning Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 29 ScholarStock 90) By itself, one tasteless ad has little impact on our values However, cumulatively, such ads may persuade consumers to act unwisely or develop undesirable attitudes Answer: TRUE Diff: Page Ref: 507 AACSB: Reflective Thinking Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 91) Because marketers continuously sponsor ads portraying values or behaviors that some (or many) consumers find distasteful or wrong, we can conclude that public scrutiny has little impact on marketers Answer: FALSE Diff: Page Ref: 507 AACSB: Reflective Thinking Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 92) Repeated exposure to very thin "ideal" figures in promotional messages leads to negative self-perceptions (particularly in women) and is partially responsible for the increase in eatingrelated disorders Answer: TRUE Diff: Page Ref: 507 AACSB: Ethical Reasoning Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 93) A recent study discovered that deceptive claims were found in about three-quarters of humorous ads and, in most cases, the humor was used to mask the deceptive claims Answer: TRUE Diff: Page Ref: 508 AACSB: Ethical Reasoning Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 94) Truth-in-advertising laws protect consumers from false advertisements Answer: TRUE Diff: Page Ref: 508 AACSB: Analytic Skills Skill: Concept Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 30 ScholarStock 95) The FTC holds marketers responsible for determining their ads' potential to mislead consumers Answer: TRUE Diff: Page Ref: 508 Skill: Concept Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 96) A low fit between a sponsored cause and the sponsoring company's positioning strategy can harm the company's image Answer: TRUE Diff: Page Ref: 511 AACSB: Reflective Thinking Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 97) A cause-related message elicits more favorable consumer attitudes than a similar ad without a cause-related message Answer: TRUE Diff: Page Ref: 511 AACSB: Reflective Thinking Skill: Concept Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 98) Cause-related advertising is less effective among more involved consumers Answer: FALSE Diff: Page Ref: 511 Skill: Concept Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 99) While many consumers report that they like ecologically friendly products, only about a third actually buy such products, and most consumers don't know which lifestyle changes are the best means to reduce global warming Answer: TRUE Diff: Page Ref: 511 Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 31 ScholarStock 100) Consumers find environmental labels difficult to understand, which increases consumers' price-sensitivity regarding green products Answer: TRUE Diff: Page Ref: 511-512 Skill: Application Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 101) How does the societal marketing concept differ from the marketing concept? Answer: The marketing concept as we know it — that is, fulfilling the needs of target consumer markets more effectively than competitors — is sometimes inconsistent or incongruous with society's well-being and best interest A more appropriate conceptualization of the traditional marketing concept, which balances the needs of society with the needs of the individuals and marketing organizations, is the societal marketing concept The societal marketing concept requires that all marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they should endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole, while fulfilling the objectives of the organization Diff: Page Ref: 496 AACSB: Analytic Skills Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 102) According to stimulus-response theory, children can easily form associations between stimuli and outcomes How does this impact the guidelines that regulate marketing toward children? Answer: Marketers must avoid ads that encourage children to pressure their parents to buy the products advertised, and those that compel children to feel that ownership of a given product will make them more accepted by peers Diff: Page Ref: 498-499 AACSB: Ethical Reasoning Skill: Application Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 103) Differentiate between broadcasting and narrowcasting Answer: The broadcasting model of marketing involves reaching large audiences with the same electronic or print messages Narrowcasting is a technique that allows marketers to send precisely directed messages to very small audiences on an ongoing basis Diff: Page Ref: 501-502 AACSB: Analytic Skills Skill: Concept Objective: 16.2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers 32 ScholarStock 104) What techniques have marketers used to blur the distinction between figure and ground and what are the ethical implications for marketers? Answer: Marketers blur the distinction between figure and ground in order to make it more difficult for consumers to clearly distinguish advertising from entertainment content For example, to combat fast-forwarding by consumers who wish to avoid TV commercials, marketers are increasingly turning to product placements, where the line between television shows and ads is virtually nonexistent and products are placed directly into television shows, often as critical elements of the story line While forecasts indicate that companies are going to steadily increase expenditures on branded entertainment, a newly formed consumer advocacy group, Commercial Alert, is lobbying for legislation that will require advertisers to disclose upfront ads that are designed as product placements Marketers also blend promotion and program content by positioning a TV commercial so close to the storyline of a program that viewers are unaware that they are watching an advertisement until they are well into it Because this was an important factor in advertising to children, the FTC has strictly limited the use of this technique TV stars or cartoon characters are now prohibited from promoting products during the children's shows in which they appear Diff: Page Ref: 504 AACSB: Ethical Reasoning Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 105) What is stimulus generalization and how is it used in the marketing of private label goods? Answer: Stimulus generalization is where consumers attribute a stimulus to a broad range of outcomes In the case of private label goods, consumers observe the stimulus of key packaging stimuli that are similar between national and private-label brands and extrapolate the national brand characteristics to the private-label brand In most drugstores, less expensive brands of personal care products such as shampoo, dental floss, skin care lotions, and soap come in packages that are extremely similar to instantly recognized and more expensive premium brands of these products, and are deliberately placed right next to them on the shelf Consumers can easily be confused by such displays and also by brand names or logos similar to those of premium offerings Diff: Page Ref: 505 AACSB: Analytic Skills Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 106) What is puffery? Answer: Puffery is the use of deliberately exaggerated claims in advertising that consumers readily recognize as exaggerated Puffery does not qualify as deceptive advertising Diff: Page Ref: 507 AACSB: Analytic Skills Skill: Concept Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 33 ScholarStock 107) What is cause-related marketing and what impact does the choice of cause have on the effectiveness of the marketing campaign? Answer: In cause-related marketing campaigns, the company contributes a portion of the revenues it receives from selling certain products to such causes as helping people inflicted with an incurable disease or hurt by inclement weather A recent study demonstrated the importance of the fit between the sponsored cause and the company's positioning strategy and that a low fit can harm the company's image In another study, an ad with a cause-related message elicited more favorable consumer attitudes than a similar ad without a cause-related message Yet another study showed that cause-related advertising is more effective among more involved consumers Diff: Page Ref: 511 AACSB: Reflective Thinking Skill: Concept Objective: 16.4: Understand how marketers can advance society's interests via such practices as advocating social benefits, cause-related marketing, and green marketing 108) What is stealth marketing and how does it impact consumers perceptions of product information? Answer: Stealth marketing (also known as masked marketing) consists of marketing messages and promotional materials that appear to come from independent parties although, in fact, they are sent by a marketer Some maintain that masked marketing strategies often violate the FTC's definition of deceptive advertising, endorsement guidelines, and other regulations of marketing, and believe that the FTC should establish clearer rules in order to reduce the use of masked advertising Others argue that the widespread use of stealth marketing abuses consumers' efforts to avoid advertising and will result in increased consumer distrust of product information Diff: Page Ref: 505 AACSB: Ethical Reasoning Skill: Concept Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 109) How might a marketer unintentionally convey socially undesirable stereotypes and images in products and advertisements? Give an example Answer: An ad for a drug used as part of HIV therapy by persons who are HIV positive shows a fit, smiling young man on a sidewalk in New York City with yellow cabs, pedestrians, and buildings in the background The bright red headline reads, "Just once a day!" Since visual images are very persuasive, it is possible that the fit young man and the caption conveys to young adults that being HIV positive is an easily "manageable" condition, and that one can engage in unsafe sex For marketers, featuring an individual who looks unhealthy in an ad for a pharmaceutical designed to control a serious medical condition will not be effective, but featuring a healthy-looking individual may communicate the wrong message Diff: Page Ref: 506 AACSB: Reflective Thinking Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 34 ScholarStock 110) How can advertisements impact culture? Answer: Since advertising is part of our culture, the cumulative persuasive impact of promotional messages on social values must be considered By itself, one tasteless ad has little impact on our values However, cumulatively, such ads may persuade consumers to act unwisely or develop undesirable attitudes For example, repeated exposure to ads depicting perfectly tanned people is likely to result in excessive sun bathing or tanning via ultraviolet light, despite the fact that it has been documented that such practices significantly increase the chances of developing cancer Diff: Page Ref: 507 AACSB: Reflective Thinking Skill: Application Objective: 16.3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 35 ScholarStock ... Ref: 500, Figure 16. 2 Skill: Concept Objective: 16. 2: Learn about potential unethical marketing practices involving targeting especially vulnerable or unaware consumers ScholarStock 16) According... 506, Figure 16. 3 AACSB: Analytic Skills Skill: Concept Objective: 16. 3: Learn how marketers can ambush consumers with unexpected ads, tinker with their perceptions, and mislead them 16 ScholarStock... disguised user D) disguised consumer E) disguised evaluation Answer: A Diff: Page Ref: 506, Table 16. 3 Skill: Application Objective: 16. 3: Learn how marketers can ambush consumers with unexpected