Marketing Midterm Chapt. 4

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

Ethics deal with personal and moral principles whereas laws are society's values and are enforceable in the courts.

More than 70 percent of the physicians in the Maricopa County (Arizona) Medical Society agreed to establish a maximum fee schedule for health services to curb rising medical costs. All physicians were required to adhere to this schedule as a condition for

ethical but illegal.

China is the world's largest tobacco-producing country and has 300 million smokers. Approximately 700,000 Chinese die annually from smoking-related illnesses. This figure is expected to rise to more than 2 million by 2025. China restricts tobacco imports.

unethically but legally.

When the 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 on the new business's computer, it was an example of

an activity that is illegal and unethical

Enron's Chief Financial Officer Andrew Fastow was indicted and then pleaded guilty on a charges of securities fraud in the Enron case and was accused of enriching himself and his family at the company's expense. He ordered an employee to fake financing to

unethically and illegally

Many media today use pay-to-vote polls, in which respondents use a 900-telephone number to vote "yes" or "no" on a current issue, as a means of generating viewer or listener interest. The Research Industry Coalition (RIC) has asked all media to inform vie

unethical but legal

A recent poll by Environics International, 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

Boycotting a product without knowing the facts can be viewed as unethical

Economic espionage refers to

the clandestine collection of trade secrets or proprietary information about a company's competitors

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

economic espionage

More than __________ of the largest firms in the U.S. have uncovered espionage in some form, costing them $300 billion annually in lost sales

50 percent

Economic espionage includes such activities as illegal trespassing, theft, fraud, ... and

searching through a competitor's trash

Economic espionage is most likely to occur in which type of industries

high-tech electronics and aerospace

Michael Smolensky is CEO of Lifeway Foods, Inc., based in Skokie, IL. The company sells kefir, a cultured milk product popular in Smolensky's native Russia. Recently, Smolensky, who had developed his own secret recipe, got a call from his supplier, saying

economic espionage

Jay Bloom's Pet Assure, a national pet health-care provider network based in Dover, N.J., recently took advantage of a rival's naivet´┐Ż. When a West Coast provider of catastrophic pet coverage "pre-announced" the addition of a wellness component (Pet Assur

legal data collection

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

rules of conduct

A code of ethics is a formal statement of rules of conduct and

ethical principles.

A formal statement of ethical principles and rules of conduct is referred to as a(n)

code of ethics.

A code of ethics refers to

a formal statement of ethical principles and rules of conduct.

Which of the following statements describes one of the major reasons codes of ethics are violated?

Many codes of ethics lack specificity.

Which of the following is a major reason for the violation of ethics codes

lack of specificity

Recently, six executives of Tyson Foods, one of the world's largest poultry, beef, and pork processors, were arrested for illegal smuggling of undocumented foreign workers into the U.S. to work at Tyson plants. Tyson's violations are the result of _______

top management's behavior

HomeWorRx Referral Network profiles home service companies for homeowners looking for a contractor or handyman. To assure the companies they work with are reliable, they check licenses and insurance coverage, their record with the Better Business Bureau,

code of ethics

The American Marketing Association Statement of Ethics is centered on three general norms: marketers must: (1) do no harm; (2) foster trust in the marketing system; and (3)

embrace, communicate, and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system

The American Marketing Association Statement of Ethics identifies six key ethical values. These include: _________, responsibility, fairness, respect, openness, and citizenship.


A health club wishes to follow the American Marketing Association Statement of Ethics and decides to offer a modified workout class at a very low price for senior citizens who might not be able to afford their services otherwise. This action exhibits whic


Even though his business is very small, the owner of a LAN center wants to follow the American Marketing Association Statement of Ethics. Every month there is a "company cookout." At the end of the meal, the employee (from president to members of the clea