ch 16

All of the following are impacts of marketing on other businesses

Acquisitions of competitors Barriers to entry Unfair competitive practices

All of the following are sustainable marketing principles

Consumer-oriented marketing Customer-value marketing Innovative marketing Societal marketing

Deficient products are products that _________.

Have neither immediate appeal nor long-run benefits.

Critics often argue that the American marketing system results in higher prices for consumers due to

High distribution costs Excessive mark-ups High advertising and promotion costs

Large marketing companies can use patents and heavy promotion spending to __________.

Set up barriers for others wanting to enter the industry

Consumer advocates wish to expand buyers' rights to include all the following EXCEPT:

The right to a full refund if the buyer is dissatisfied, no questions asked. Retailers often give a refund when buyers are dissatisfied; however, this is not a proposed "consumer right."

Consumer advocates wish to expand buyers' rights to include all the following

The right to be well informed about important aspects of the product. The right to be protected against questionable products and marketing practices. The right to influence products and marketing practices in ways that will improve the "quality of life."

Which of the following granted the Federal Trade Commission authority to regulate "deceptive acts and practices"?

Wheeler-Lea Act

______ is illegal in the United States, but expected in countries such as Russia and China where it is considered to be a standard business practice.

bribery American companies often find it difficult to compete in countries where bribery is a standard business practice. American firms must conform to American law when doing business in a foreign country.

The American Marketing Association (AMA) has created a code of ethics that includes all of the following ethical values EXCEPT which one?

competitiveness

The two major movements to keep business in line are environmentalism and ________.

consumerism

LG's front-loading steam washing machines provide superior cleaning while using less water and energy than existing washing machines. This is an example of which of the following?

desirable products Desirable products give both high immediate satisfaction and long-run benefits.

An advertising campaign that promotes the purchase of a luxury car as a means of proving one's success would be criticized for

encouraging materialism Critics have charged that the marketing system urges too much interest in material possessions. Ad campaigns that promote opulence, waste, and conspicuous consumption encourage materialism.

Critics point out that in the drug industry, a pill that costs five cents to make may cost the consumer $2 to buy. This is an example of which of the following?

excessive marketing

Marketers argue that most companies avoid deceptive practices because such practices_____.

help their business in the long run

Advertising "puffery" is a term for _________.

innocent exaggeration for effort

Suppose that a firm's corporate goal states that 33% of the company's revenue must come from new or improved products. Such a goal is most consistent with which of the following?

innovative marketing The principle of innovative marketing is in effect when a company continuously seeks real product and marketing improvements.

Ethics and social responsibility must be a component of the ___________.

overall corporate culture

Some criticize marketers for introducing new technology that requires the replacement of old products that still work. This is called

planned obsolescence Marketers have been accused of causing their products to become obsolete before they actually should need replacement.

________ products give high immediate satisfaction but may hurt consumers in the long run.

pleasing products

The question, "Would making our products recyclable add value for our customers?" is likely to come out of what practice of environmental sustainability?

product stewardship Product stewardship minimizes environmental impacts throughout the product life cycle, while reducing costs.

_________ is a type of economic discrimination in which major chain retailers avoid placing stores in disadvantaged neighborhoods.

relining

Critics often argue that the American marketing system results in higher prices for consumers due to all EXCEPT which of the following?

replacement and repair costs steaming from poor product quality Critics of the marketing system are most likely to charge that intermediaries are inefficient and lead to higher prices. Advertising, promotion, and distribution costs are most often criticized, along with mark-up levels.

Mortgage lenders who targeted and exploited customers in poor urban areas by steering them toward subprime loans even though many qualified for safer fixed-rate loans would most likely be accused of ___________

reverse relining

All of the following are impacts of marketing on other businesses EXCEPT:

too few social goods Too few social goods is an impact of marketing on society, not necessarily other businesses.

To restore the balance between private and public goods, producers could be required to bear the full ___________ costs of their operations.

social

________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

sustainable marketing Sustainable marketing holds that a company's marketing should support the best long-run performance of the marketing system.

All of the following are sustainable marketing principles EXCEPT ________.

value marketing