Marketing chapter 3

The Federal Trade Commission (FTC) monitors ________.

unfair business practices

How does technology impact consumer value?

(1) The declining cost of technology allows consumers to assess the value of technology-based products on other dimensions, such as quality, service, and relationships. (2) Technology provides value through the development of new products. (3) Technology enables the collection of data used in the growing field of data analytics.

consumer bill of rights

An outline presented by President John F. Kennedy in 1962 that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.

Describe four generational cohorts.

Baby boomers are the generation of 73 million among the U.S. population born between 1946 and 1964. These Americans are growing older and will all be 65 or older by 2030. (2) Generation X includes the 50 million people born between 1965 and 1976. These well-educated Americans, also known as the baby-bust cohort because of declining birthrates during that time, are supportive of racial and ethnic diversity. (3) Generation Y, or millennials, are the 75 million Americans among the U.S. population born between 1977 and 1994. The rising birthrate of this "echo-boom" cohort is the result of baby boomers having children. (4) The post-millennial generation, which includes consumers born between 1995 and 2010, is referred to as Generation Z.

What is the difference between a consumer's disposable and discretionary income?

Disposable income is the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation. Discretionary income is the money that remains after paying for taxes and necessities and is usually spent on luxury items.

Economic espionage includes what kinds of activities?

Economic espionage is the illegal and unethical clandestine collection of trade secrets or proprietary information about a company's competitors. This practice includes trespassing, theft, fraud, misrepresentation, wiretapping, searching of competitors' trash, and violations of written and implicit employment agreements with noncompete clauses.

baby boomers

Includes the generation of 73 million children born between 1946 and 1964.

How are important values such as sustainability reflected in the marketplace today?

Many Americans desire and practice sustainability to preserve the environment. In fact, 82 percent of today's shoppers consider themselves environmentally friendly. Consumers also prefer brands that have a strong link to social action. Colgate, for example, used a Super Bowl ad to suggest that consumers could save water by turning off the faucet while brushing their teeth.

What is meant by moral idealism?

Moral idealism is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome; it is the philosophy embodied in the Consumer Bill of Rights and favored by consumer interest groups.

Why are many companies developing multicultural marketing programs?

Multicultural marketing programs consist of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races and ethnic groups. Multicultural marketing programs are being developed in response to rapid changes in the racial and ethnic diversity of the United States. The growing size of the African American, Asian, and Page 91Hispanic populations has increased the economic impact of these groups on the marketplace.

The _____ Act forbids actual monopolies, whereas the ______ Act forbids actions that are likely to lessen competition.

Sherman Antitrust; Clayton

What is meant by social responsibility?

Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions. It comprises three concepts: (1) profit responsibility—maximizing profits for the organization's owners or shareholders; (2) stakeholder responsibility—focusing on the obligations of the organization to those who can affect the achievement of its objectives; and (3) societal responsibility—focusing on the obligations of the organization to the preservation of the ecological environment and to the general public.

What is sustainable development?

Sustainable development involves conducting business in such a way that protects the natural environment while making economic progress. Green marketing is an ecological example of such an initiative.

How does the Better Business Bureau encourage companies to follow its standards for commerce?

The Better Business Bureau (BBB) uses a Partner Code of Conduct to encourage members to comply with its standards. Companies, which join the BBB voluntarily, must agree to follow these standards before they are allowed to display the BBB Accredited Business logo.

What rights are included in the Consumer Bill of Rights?

The Consumer Bill of Rights (1962) codified the ethics of exchange between buyers and sellers. These are the rights to safety, to be informed, to choose, and to be heard.

code of ethics

a formal statement of ethical principles and rules of conduct

consumerism

a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions

moral idealism

a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

Utilitarianism

a personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior

competition

alternative firms that could provide a product to satisfy a specific market's needs

self-regulation

an alternative to government control, whereby an industry attempts to police itself

marketspace

an information and communication based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings

multicultural marketing

combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races

sustainable development

conducting business in a way that protects the natural environment while making economic progress

demographics

describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation

Marketing efforts to produce, promote, and reclaim environmentally sensitive products are called _____.

green marketing

generation x

includes the 50 million people born between 1965 and 1976. Also called the baby bust.

generation y

includes the 75 million Americans born between 1977 and 1994. Also called the echo-boom.

technology

inventions or innovations from applied science or engineering research

In pure competition there are _____ number of sellers.

large

green marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products

cause marketing

occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

economy

pertains to the income, expenditures, and resources that affect the cost of running a business and household

regulation

restrictions state and federal laws place on business with regard to the conduct of its activities

social forces

the demographic characteristics of the population and its culture

social responsibility

the idea that organizations are part of a larger society and are accountable to that society for their actions

disposable income

the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation

discretionary income

the money that remains after paying for taxes and necessities

ethics

the moral principles and values that govern the actions and decisions of an individual or group

internet of things

the network of products embedded with connectivity-enabled electronics

generation z

the post-millennial generation, which includes consumers born between 1995 and 2010.

environmental scanning

the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends

culture

the set of values, norms, and attitudes that are learned and shared among the members of a group.

gross income

the total amount of money made in one year by a person, household, or family unit

electronic commerce

wthe activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services