Question 1

Deliberately luring customers to the store for a bargain that is out of stock is an example of deceptive:

Accepted Answer

Deliberately luring customers to the store for a bargain that is out of stock is an example of deceptive promotion. The promotion is misleading and not truthful, as the store is not able to fulfill its promise of offering the bargain.

Question 2

Which of the following statements about consumerism is FALSE?

Accepted Answer

Consumerists do not argue that consumers should have rights but no responsibility for their product choices. In fact, they often stress the importance of responsible consumption and the impact of consumer choices on social and environmental issues.

Question 3

Intel and Microsoft have been accused in recent years of holding back their next generation computer chips or software until demand is exhausted for the current generation. This is a problem found under the concept of _________.

Accepted Answer

The situation described in the question where Intel and Microsoft hold back their next generation products until demand for the current generation is exhausted is an example of planned obsolescence. This is the practice of designing products with a limited lifespan or deliberately holding back new products to encourage consumers to upgrade or purchase more frequently.

Question 4

The consumer's right to be informed entails which of the following principles?

Accepted Answer

The consumer's right to be informed includes all of the principles listed: open dating for product freshness, nutritional labelling for the nutritional value of a product, ingredient labelling to know what ingredients are in a product, and unit pricing to know the true cost per unit.

Question 5

To cause products to become obsolete before they actually need replacement is known as:

Accepted Answer

Planned obsolescence is the practice of making products designed to become outdated or useless before they should need replacement, thus encouraging consumers to buy new products sooner. This can include creating products with intentionally short lifespans or discontinuing support for older models.

Question 6

A "cooling- off period" in which buyers can cancel a contract after rethinking the contract is designed to protect the consumer from:

Accepted Answer

A cooling-off period is specifically designed to protect consumers from high-pressure selling tactics that may pressure them into signing a contract they are not fully comfortable with. With a cooling-off period, the buyer has the opportunity to cancel the contract without penalty if they change their mind or feel that they made a decision under duress.

Question 7

Sportswear manufacturer, Adidas, has embarked on a number of community based projects. Some of its activities include improved pay and conditions for workers in underdeveloped countries, offers of free sports gear to talented athletes from poor socioeconomic groups, low cost brands available in poorer nations and support for local community sports activities including the construction of sports grounds. Adidas' approach is BEST described as:

Accepted Answer

Adidas' activities, such as improving pay and conditions for workers, offering free sports gear to talented athletes from poor socioeconomic groups, making low-cost brands available in poorer nations, and supporting local community sports activities, align with societal marketing. This approach focuses on benefiting society as a whole and going beyond just the interests of the company and its customers.

Question 8

The marketer is required to make decisions by considering consumers' wants, company requirements, long- run consumer interests, and the long- run interests of society in:

Accepted Answer

Societal marketing requires marketers to consider not only the wants and needs of consumers and the company's goals, but also the long-term interests of society as a whole, such as environmental sustainability and ethical business practices. This involves finding a balance between meeting consumer demands and making socially responsible decisions.

Question 9

Carbon footprint labels require manufacturers to identify the quantity (in grams) of __________ emissions caused by the manufacture and transportation of the product.

Accepted Answer

Carbon footprint labels specifically measure the quantity of carbon dioxide emissions caused by a product's manufacture and transportation.

Question 10

The process of looking at all the stages involved in making the product and transporting it to market, working out the energy consumption at each stage, and converting that energy into the resulting amount of carbon emissions is known as:

Accepted Answer

The process described in the question is known as carbon footprinting. Choices A, B, C, and E do not accurately describe this process.

Question 11

Mini Case 19- 1
"Citizens for Action" was a consumer watchdog group that monitored marketing activities in Melbourne. Various members of the executive committee were each responsible for a particular area. Melanie logged in complaints that marketing promotion encouraged people to judge one another by what they own rather than by who they are. Matt recorded activities where the selling of private goods appeared to be at the expense of public goods. Murray listened to residents who complained that billboards were ruining their neighbourhood scenery and hurting property values.
-Martha works for a group known as Citizens for Action where she is required to locate and report on examples of billboards with explicit sexual messages. Martha's role is related to which criticism of marketing's impact on society as a whole?

Accepted Answer

Martha's role in locating and reporting on billboards with explicit sexual messages is related to the criticism of cultural pollution, where marketing is seen as contributing to the degradation of cultural values, beliefs, and norms. None of the other options (too few social goods, too much political power, false wants and too much materialism or all of the above) are directly related to Martha's role in identifying sexualized billboards.

Question 12

The result of advertising's constant assault upon people's senses is said to be cultural:

Accepted Answer

The term "cultural pollution" is used to describe the negative impact of excessive advertising on society, suggesting it clutters and degrades cultural values and public spaces much like pollution does to the natural environment.

Question 13

Mini Case 19- 1
"Citizens for Action" was a consumer watchdog group that monitored marketing activities in Melbourne. Various members of the executive committee were each responsible for a particular area. Melanie logged in complaints that marketing promotion encouraged people to judge one another by what they own rather than by who they are. Matt recorded activities where the selling of private goods appeared to be at the expense of public goods. Murray listened to residents who complained that billboards were ruining their neighbourhood scenery and hurting property values.
-Melanie was so incensed by a television commercial that she was prompted to write to the Advertising Standards Board and register her complaint. At issue was an advertisement for a credit card company that encouraged customers to use their credit cards for all purchases in the three months prior to Christmas so as to avail themselves of a limited time offer. The offer consisted to two elements-double loyalty points for each $1 spent and a free entry into prize pool for a trip to Tahiti for every purchase made. Melanie is MOST likely concerned about:

Accepted Answer

Melanie's complaint about the credit card advertisement suggests that she is concerned with false wants and too much materialism, as the advertisement appears to encourage people to judge others based on what they own rather than who they are. This relates to societal concerns about consumerism and advertising that promote superficial values over more meaningful ones. While the other concerns listed may be relevant to the activities of Citizens for Action, they do not appear to be the primary concern raised by Melanie's complaint.

Question 14

Examples of competitive practices designed to hurt or destroy the competition include:

Accepted Answer

All of the options listed involve competitive practices that are intended to harm or eliminate competition. Resale price maintenance involves requiring resellers to sell products at a fixed price, which reduces price competition. Mergers that substantially lessen competition involve two companies merging to become a dominant force in the market, reducing competition. Price fixing is when competitors agree to set prices at a certain level, reducing price competition. Misuse of market power involves using one company's dominant position in the market to harm or eliminate competitors.

Question 15

According to evidence cited in your text, retailers who have worked extensively with carbon footprint labelling are finding that up to 90 per cent of the footprint associated with a product comes from:

Accepted Answer

According to the evidence cited in the text, up to 90% of the footprint associated with a product comes from the supply chain.

Question 16

Competitive practices that are designed to hurt or destroy the competition are collectively known as:

Accepted Answer

Predatory practices refer to aggressive business tactics that are intended to harm or eliminate competition in the marketplace. These practices can include predatory pricing, which involves setting prices so low that competitors cannot compete, or predatory lending, which involves offering loans with extremely high interest rates to weaken or bankrupt competitors. These practices are often viewed as unethical and can be illegal under antitrust laws.

Question 17

When critics charge that marketing harms other businesses, three common practices are cited as evidence of this harm. All of the following are among those practices EXCEPT:

Accepted Answer

The other practices listed (unfair competitive practices, acquisitions of competitors, and marketing practices that create barriers to entry) can all be seen as ways in which marketing harms other businesses. However, shareholder wealth enhancement is a common goal of marketing that does not necessarily harm other businesses, as long as it is pursued within ethical and legal boundaries.

Question 18

With growing oil shortages, many oil producers re- defined themselves as "energy companies" and broadened their efforts to develop and market alternative forms of energy. This move would be in accordance with:

Accepted Answer

Sense-of-mission marketing involves defining a company's mission in broad social terms rather than narrow product terms, which aligns with oil producers redefining themselves as energy companies to include alternative energy sources.

Question 19

Generally, large retailers have margins of approximately:

Accepted Answer

Large retailers typically operate on thin margins due to high competition and large volume sales, often around 1.5% profit on sales.

Question 20

Australian firms that engage in unfair, misleading or deceptive marketing practices can be prosecuted under which act?

Accepted Answer

The Competition and Consumer Act (previously known as the Trade Practices Act) is the main legislation in Australia that regulates unfair, misleading or deceptive marketing practices. The other options listed are not specific to this issue or are not the current name of the relevant legislation.

Quiz 19: Responsible Marketing