Ch. 2 Marketing Environment, Social Responsibility, and Ethics

Question 1

Target Market

Answer 1

a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group

Question 2

Competition Bureau

Answer 2

the federal department charged with administering most marketplace laws

Question 3

Self-regulation

Answer 3

programs voluntarily adopted by business groups to regulate the activities of their members

Question 4

Purchasing Power

Answer 4

a comparison of income versus the relative cost of a set 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

Disposable Income

Answer 6

the amount of money people have to spend after taxes

Question 7

Gross Income

Answer 7

the amount of money people earn before taxes and expenses

Question 8

Inflation

Answer 8

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

Question 9

Recession

Answer 9

a period of economic activity characterized by negative growth, which reduces demand for goods and services

Question 10

Environmental Factors

Answer 10

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

Question 11

Component Lifestyle

Answer 11

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 12

Demography

Answer 12

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

Question 13

Multiculturalism

Answer 13

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

Question 14

Basic Research

Answer 14

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

Question 15

Applied Research

Answer 15

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

Question 16

Corporate Social Responsibility (CSR)

Answer 16

a business’s concern for society’s welfare

Question 17

Triple Bottom Line

Answer 17

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

Question 18

Social Acceleration

Answer 18

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

Question 19

Pyramid of Corporate Social Responsibility

Answer 19

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

Question 20

Green Marketing

Answer 20

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

Question 21

Ethics

Answer 21

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

Question 22

Morals

Answer 22

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

Question 23

Code of Ethics

Answer 23

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