Business And Society Ethics And Stakeholder Management 1st Canadian Edition By Len Karakowsky – Test Bank

Chapter 11—Consumer Stakeholders: Information Issues and Responses

TRUE/FALSE

1. Consumer orientation is at the heart of the current marketing concept.

ANS: T

2. Customer satisfaction is a central goal of some firms in some industries, but can be peripheral for others in the long run.

ANS: F

3. The “consumer’s Magna Carta” consists of four basic rights spelled out by President John F. Kennedy.

ANS: T

4. The effect Ralph Nader had on the North American consumer movement can be characterized as a mediating force within a relatively short-lived period of consumerism and socially oriented legislation.

ANS: F

5. During the 1980s, consumer groups have made significant unparalleled advances in many areas of consumer interest, including auto safety and food additives.

ANS: F

6. As long as an advertiser does not intend to deceive customers, there is not likely to be any legal or ethical responsibility associated with communicating questionable claims to customers through advertising.

ANS: F

7. Supporters of advertising contend that it is an efficient way to inform consumers of the wide range of available products and services in our economy.

ANS: F

8. When an advertiser presents facts so as to create false beliefs in consumers, ethical questions are likely to be raised.

ANS: T

9. The major problem with the use of psychological appeals in advertising is that these tend to confuse consumers to the extent that they pay far more for some goods and services than they otherwise would.

ANS: F

10. The use of sex as an advertising theme is a major ethical issue, especially for some women’s groups, because such advertising can be perceived as degrading and dehumanizing to women.

ANS: T

11. Some advertisers have agreed to follow self-regulatory guidelines when addressing concerns regarding advertising to children.

ANS: T

12. Consumer stakeholders as a group have substantially common interests and, therefore, can be considered to have similar goals, expectations, and strengths.

ANS: F