Ch. 3 Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Question 1

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

Answer 1

Environmental scanning

Question 2

Social 
economic 
technological 
competitive 
regulatory forces

Answer 2

Environmental trends typically arise from five sources

Question 3

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

Answer 3

Demographics

Question 4

Includes the generation of 76 million children born between 1946 and 1964

Answer 4

Baby boomers

Question 5

Includes the 55 million people born between 1965 and 1980. Also called the baby bust

Answer 5

Generation X

Question 6

Includes the 62 million Americans born between 1981 and 1996. Also called the echo boom

Answer 6

Generation Y

Question 7

The post millennial generation, which includes consumers born between 1997 and 2010

Answer 7

Generation Z

Question 8

Combinations of the marketing mix that reflect the unique attitude, ancestry, communication preferences, and lifestyles of different races

Answer 8

Multicultural marketing

Question 9

This set of values, ideas, and attitudes that are learned and shared among the members of a group

Answer 9

Culture

Question 10

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

Answer 10

Economy

Question 11

The total amount of money made in one year by a person, household, or family unit. Also known as money income at the Census Bureau

Answer 11

Gross income

Question 12

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

Answer 12

Disposable income

Question 13

The money that remains after paying for taxes and necessities

Answer 13

Discretionary income

Question 14

Inventions or innovations from applied science or engineering research

Answer 14

Technology

Question 15

The alternative firms that could provide a product to satisfy a specific markets need

Answer 15

Competition

Question 16

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

Answer 16

Regulation

Question 17

Why does regulation exist

Answer 17

To protect companies as well as consumers

Question 18

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

Answer 18

Consumerism

Question 19

An alternative to government control Where the industry attempts to police itself

Answer 19

Self regulation

Question 20

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

Answer 20

Ethics

Question 21

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

Answer 21

Consumer bill of rights

Question 22

Two kinds of unethical behavior are most common

Answer 22

(1) Economic espionage and (2) corruption

Question 23

The clandestine collection of trade secrets or proprietary information about the companies competitors

Answer 23

Economic espionage

Question 24

Involves an ethical conduct by a person in trusted with a position of authority, often to acquire a personal benefit

Answer 24

Corruption

Question 25

A formal statement of ethical principles and rules of conduct

Answer 25

Code of ethics

Question 26

Employees who report unethical or legal actions of their employers

Answer 26

Whistle blowers

Question 27

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

Answer 27

Moral idealism

Question 28

A personal moral philosophy that focuses on “the greatest good for the greatest number” by assessing the cost and benefits of the consequences of ethical behavior

Answer 28

Utilitarianism

Question 29

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

Answer 29

Social responsibility

Question 30

(1) profit responsibility
(2) stakeholder responsibility
(3) societal responsibility

Answer 30

Concepts of social responsibility

Question 31

Holds that companies have a simple duty: to maximize profits for their owners or stockholders

Answer 31

Profit responsibility

Question 32

Focuses on the obligations and organization has to those who can affect achievement of its objectives. These constituencies include consumers, employees, suppliers, and distributors.

Answer 32

Stakeholder responsibility

Question 33

Refers to obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public

Answer 33

Societal responsibility

Question 34

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

Answer 34

Green marketing