Test Bank For ABC’s Of Relationship Selling through Service 12th Edition by Charles Futrell

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Test Bank For ABC’s Of Relationship Selling through Service 12th Edition by Charles Futrell

Chapter 02 Ethics FirstÖThen Customer Relationships

  True / False Questions

1.  The ethical behavior of an employee is influenced by managers, co-workers, and the organization.
Answer: True

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Remember

AACSB: Ethics

Level of Difficulty: Easy

Explanation: The ethical behavior of individual employees is influenced by the organization and by other people, such as co-workers and managers. Top management plays a significant role in the ethical decisions made by employees.

2. The world views and belief systems of employees from the same country are typically identical. 

Answer: False

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Remember  

AACSB: Ethics

Level of Difficulty: Easy  

Explanation: No two people are alike because of varying personalities, religious backgrounds, and family and personal experiences. Even people from the same culture will have different ideas of right and wrong.

3. An individual in the pre-conventional stage of morality asks, “What can I get away with?”
Answer: True

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Remember  

AACSB: Ethics

Level of Difficulty: Easy  

Explanation: At the pre-conventional moral development level, an individual acts in his or her own best interest and thus follows rules to avoid punishment or receive rewards. This individual would break moral and legal laws.

4. Individuals at the principled moral level base ethical decisions on laws and consequences. 

Answer: False

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Understand

AACSB: Ethics

Level of Difficulty: Medium

Explanation: At the principled moral development level, an individual lives by an internal set of morals, values, and ethics and would disobey laws to follow what he or she believes is right. At the conventional moral development level, an individual conforms to the expectations of others and legal laws.

5. Most sales people operate at the conventional level of moral development.
Answer: True

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Remember  

AACSB: Ethics

Level of Difficulty: Easy  

Explanation: The majority of sales personnel, as well as people in general, operate at the conventional level. However, a few individuals are at level 1, and it is estimated that less than 20 percent of individuals reach level 3.

6. Sales representatives at the preconventional moral development level would most likely be unconcerned about lying to customers if getting caught was unlikely. 

Answer: True

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Understand

AACSB: Ethics

Level of Difficulty: Medium

Explanation: Individuals at the preconventional moral development stage break moral and legal laws when they can get away with it. So, they probably would feel no concern about lying to a customer.

7. Morals refer to people’s adherence to right or wrong behavior and right or wrong thinking.
Answer: True

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Remember  

AACSB: Ethics

Level of Difficulty: Easy  

Explanation: People’s morals are their adherence to right or wrong behavior and right or wrong thinking. As one thinks, one does.

8. At the preconventional moral development level, an individual conforms to the expectations of others.
FALSE

Answer: True

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Understand

AACSB: Ethics

Level of Difficulty: Medium

Explanation: Individuals at the preconventional moral development stage break moral and legal laws when they can get away with no matter what others expect. Those at the conventional level conform to expectations and maintain laws.

9. Based on levels of moral development, a Golden Rule salesperson is in the minority among sales personnel.
Answer: True

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Remember  

AACSB: Ethics

Level of Difficulty: Easy  

Explanation: The majority of sales personnel, as well as people in general, operate at the conventional level. However, a few individuals are at level 1, and it is estimated that less

than 20 percent of individuals reach level 3. Golden Rule salespeople are in level 3, which is a minority.

10. The Golden Rule of Selling requires people whose personal character is at level 2.
Answer: False

Learning Objective: 02-01

Topic: What Influences Ethical Behavior?

Blooms: Understand

AACSB: Ethics

Level of Difficulty: Medium

Explanation: Golden Rule salespeople are in Level 3, which involves making ethical and moral decisions as all costs. The salesperson does what is right not what is in his or her best interest. 

11. A fixed point of reference must be separate from you.
Answer: True

Learning Objective: 02-01

Topic: Are There Any Ethical Guidelines?

Blooms: Understand

AACSB: Ethics

Level of Difficulty: Medium

Explanation: A fixed point of reference refers to something that provides the correct action to take in any situation and never gets tailored to fit an occasion. This fixed point of reference must be separate from you; otherwise you will be changing the rules based upon your best interest in various situations.

12. Multiple world religions adhere to the Golden Rule.
Answer: True

Learning Objective: 02-01

Topic: 

Blooms: Understand

AACSB: Ethics

Level of Difficulty: Medium

Explanation: Christians, Jews, Hindus, Buddhists, and Confucius’ followers embrace the

Golden Rule, although each has its own interpretation.

13. Ethical behavior refers to conducting yourself in the proper manner and treating others fairly.
Answer: True

Learning Objective: 02-02

Topic: Management’s Ethical Responsibilities

Blooms: Remember  

AACSB: Ethics

Level of Difficulty: Easy  

Explanation: Ethical behavior involves treating others with fairness, being honest, and behaving in a proper manner. 

14. An ethical dilemma arises in a situation when each alternative choice has some undesirable elements due to potentially negative ethical consequences.
Answer: True

Learning Objective: 02-02

Topic: Management’s Ethical Responsibilities

Blooms: Remember  

AACSB: Ethics

Level of Difficulty: Easy  

Explanation: Right and wrong are unclear in ethical dilemmas. Such situations are faced by managers regularly.

15. An ethical sales manager should set realistic and obtainable goals.
Answer: True

Learning Objective: 02-03

Topic: Ethics in Dealing with Salespeople

Blooms: Remember  

AACSB: Ethics

Level of Difficulty: Easy  

Explanation: Realistic and obtainable goals eliminate excess pressure on salespeople to behave unethically. Pressure motivates salespeople, but managers must set reasonable ones to avoid unethical actions.  

 16. If management decides to increase the number of territories in a state, there is a possibility the earnings of the salespeople working that state will decrease.
Answer: True

Learning Objective: 02-02

Topic: Management’s Ethical Responsibilities

Blooms: Understand

AACSB: 

Level of Difficulty: Medium

Explanation: Management makes decisions that affect sales territories and salespeople. For example, the company might increase the number of sales territories, which often necessitates

splitting a single territory, which takes customers away from a salesperson and reduces his or her earnings.

17. Josh Damon sells industrial-sized heating and cooling systems. His territory includes Illinois, Iowa, and Missouri. Management at Damon’s firm has decided to increase the number of territories in each sales region. Damon will most likely be excited about the opportunity this presents for him to earn more money.
Answer: False

Learning Objective: 02-02

Topic: Management’s Ethical Responsibilities

Blooms: Understand

AACSB: Ethics

Level of Difficulty: Medium

Explanation: An increase in the number of sales territories usually necessitates splitting a single territory, which takes customers away from a salesperson. Josh will not be happy because his earnings will decrease.

18. If a salesperson has a drug or alcohol problem, a manager has the ethical responsibility to fire the individual based on right-to-work laws.
Answer: False

Learning Objective: 02-02

Topic: Ethics in Dealing with Salespeople

Blooms: Understand

AACSB: Ethics

Level of Difficulty: Medium

Explanation: Right-to-work laws relate to unions and are irrelevant to a salesperson with drug and alcohol problems. An ethical manager would most likely offer support to the salesperson and require the salesperson to seek substance abuse treatment.

19. Today employers have the right to terminate salespeople for poor performance, excessive absenteeism, unsafe conduct, and poor organizational citizenship.
Answer: True

Learning Objective: 02-02

Topic: Management’s Ethical Responsibilities

Blooms: Understand

AACSB: Ethics

Level of Difficulty: Medium

Explanation: Due to the termination-at-will rule, employers have the right to terminate sales personnel for poor performance, excessive absenteeism, unsafe conduct, and poor organizational citizenship. It is crucial, however, for employers to maintain accurate records of these events for employees and to inform employees about where they stand.

20. Cooperative acceptance means that employees cannot be discriminated against in employment practices and they have the right to be free of sexual and racial harassment.
Answer: True

Learning Objective: 02-02

Topic: Management’s Ethical Responsibilities

Blooms: Remember  

AACSB: Ethics

Level of Difficulty: Easy  

Explanation: Cooperative acceptance refers to the right of employees to be treated fairly and with respect regardless of race, sex, national origin, physical disability, age, or religion while on the job. Not only does this mean that employees have the right not to be discriminated against in employment practices and decisions, but it also means that employees have the right to be free of sexual and racial harassment.