Ch 2

Question 1

Target Market

Answer 1

A group of people or organization for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

Question 2

Competition Bureau

Answer 2

The federal department charged with administrating most marketplace laws

Question 3

Self-Regulation

Answer 3

Programs voluntarily adopted by business groups to regulate the activities of its members

Question 4

Purchasing Power

Answer 4

A comparison of income versus the relative cost of a set of standard of goods and services in different geographic areas

Question 5

Discretionary Income

Answer 5

The amount of money people have to spend on nonessential items

Question 6

Inflation

Answer 6

A measure of the decrease in value of money, expressed as the percentage reduction in value since the previous year

Question 7

Recession

Answer 7

A period of economic activity characterized by negative growth, which reduces demands for goods and services

Question 8

Environmental Factors

Answer 8

Noncontrollable factors caused by natural disasters, which negatively or positively affect organizations

Question 9

Component Lifestyles

Answer 9

Mode of living that involves choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle

Question 10

Demography

Answer 10

The study of people’s vital statistics, such as their age, race, and ethnicity, and location

Question 11

Generation Z

Answer 11

People born between 1995 and 2009

Question 12

Generation Y

Answer 12

People born between 1979 and 2000

Question 13

Generation X

Answer 13

People born between 1966 and 1978

Question 14

Baby Boomers

Answer 14

People born between 1947 and 1965

Question 15

Multiculturalism

Answer 15

Refers to the peaceful and equitable coexistence of different cultures, rather than one culture, in a country

Question 16

Basic Research

Answer 16

Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon

Question 17

Applied Research

Answer 17

An attempt by marketers to use research to develop new or improved products

Question 18

Corporate Social Responsibility

Answer 18

A business’s concern for society’s welfare

Question 19

Triple Bottom Line

Answer 19

A business philosophy seen as the pursuit of profit while also benefiting society and the environment

Question 20

Social Acceleration

Answer 20

The concept of exponentially rapid growth starting with human desire for improved products, spurring competitive pursuit of market share, driving innovation and technology, resulting in higher standard of living, but with new socio-environmental problems

Question 21

Pyramid of Corporate Social Responsibility

Answer 21

A model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm’s economic performance supports the entire structure

Question 22

Green Marketing

Answer 22

The development and marketing of products designed to minimize negative effects on the physical environment

Question 23

Ethics

Answer 23

The moral principles or values that generally govern the conduct of an individual or group

Question 24

Morals

Answer 24

The rules people develop as a result of cultural values and norms

Question 25

Code of Ethics

Answer 25

A guideline to help marketing managers and other employees make better decisions