Midterm Ch. 4

Question 1

Target Market

Answer 1

When a company finds a group of people to sell to and they design their business around the people they are selling to.

Question 2

Component Lifestyle

Answer 2

When you focus on choosing goods and services that are broader instead of being very specific only meeting the needs of a single culture or person,

Question 3

Demography

Answer 3

The study of people’s vital statistics like their age, race, ethnicity, and etc.

Question 4

Generation Z

Answer 4

(1995-2010) they are very cautious and tend to not take as many risks. They identify multiculturalism as who they are.

Question 5

Millenials

Answer 5

(1979-1994) 81 million are in the United States.

Question 6

Generation X

Answer 6

(1965-1978) 65 million are in the United States. They are independent, resilient, and adaptable.

Question 7

Baby Boomers

Answer 7

(1946-1964) They think price and quality are very important they tend to buy more through traditional advertisement like word of mouth.

Question 8

Purchasing Power

Answer 8

A comparison of income versus the cost of living depends on what geographic area you are from.

Question 9

Inflation

Answer 9

A measure of the decrease in value of money, compared to the previous years.

Question 10

Recession

Answer 10

A period where there is negative growth that reduces demands for goods and services.

Question 11

Basic Research

Answer 11

Research that aims to confirm an existing theory or to learn more about a concept or phenomenon.

Question 12

Applied Research

Answer 12

Research aimed to improve or develop a new product.

Question 13

Consumer Product Safety Commission (CPSC)

Answer 13

A federal agency that aims to protect the health and safety of consumers in and around their homes.

Question 14

Food and Drug Administration (FDA)

Answer 14

A federal agency that enforces regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.

Question 15

Federal Trade Commission (FTC)

Answer 15

A federal agency that prevents corporations from using unfair methods of competition in commerce.

Question 16

Environmental Scanning

Answer 16

A process in which a team of specialists continually collects and evaluates environmental information in order to identify future market opportunities and threats.

Question 17

Sherman Act of 1890

Answer 17

Makes trusts and conspiracies in restraint of trade illegal; makes monopolies and attempts to monopolize illegal.

Question 18

Clayton Act of 1914

Answer 18

Outlaws discrimination in prices to different buyers; prohibits tying contracts (which require the buyer of one product to also buy another item in the line); makes illegal the combining of two or more competing corporations by pooling ownership of stock.

Question 19

Robinson-Patman Act of 1936

Answer 19

Prohibits charging different prices to different buyers of merchandise of like grade and quantity; requires sellers to make any supplementary services or allowances available to all purchasers on a proportionately equal basis.

Question 20

Federal Food and Drug Act of 1906

Answer 20

Prohibits adulteration and misbranding of foods and drugs involved in interstate commerce; strengthened by the Food, Drug, and Cosmetic Act (1938) and the Kefauver-Harris Drug Amendment (1962).

Question 21

Consumer Product Safety Act of 1972

Answer 21

Created the Consumer Product Safety Commission, which has the authority to specify safety standards for most products. Child Protection Act of 1990