Midterm Ch. 4 Flashcards
Target Market
When a company finds a group of people to sell to and they design their business around the people they are selling to.
Component Lifestyle
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,
Demography
The study of people’s vital statistics like their age, race, ethnicity, and etc.
Generation Z
(1995-2010) they are very cautious and tend to not take as many risks. They identify multiculturalism as who they are.
Millenials
(1979-1994) 81 million are in the United States.
Generation X
(1965-1978) 65 million are in the United States. They are independent, resilient, and adaptable.
Baby Boomers
(1946-1964) They think price and quality are very important they tend to buy more through traditional advertisement like word of mouth.
Purchasing Power
A comparison of income versus the cost of living depends on what geographic area you are from.
Inflation
A measure of the decrease in value of money, compared to the previous years.
Recession
A period where there is negative growth that reduces demands for goods and services.
Basic Research
Research that aims to confirm an existing theory or to learn more about a concept or phenomenon.
Applied Research
Research aimed to improve or develop a new product.
Consumer Product Safety Commission (CPSC)
A federal agency that aims to protect the health and safety of consumers in and around their homes.
Food and Drug Administration (FDA)
A federal agency that enforces regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.
Federal Trade Commission (FTC)
A federal agency that prevents corporations from using unfair methods of competition in commerce.
Environmental Scanning
A process in which a team of specialists continually collects and evaluates environmental information in order to identify future market opportunities and threats.
Sherman Act of 1890
Makes trusts and conspiracies in restraint of trade illegal; makes monopolies and attempts to monopolize illegal.
Clayton Act of 1914
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.
Robinson-Patman Act of 1936
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.
Federal Food and Drug Act of 1906
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).
Consumer Product Safety Act of 1972
Created the Consumer Product Safety Commission, which has the authority to specify safety standards for most products. Child Protection Act of 1990
