Chapter 3

Question 1

The benefit an organization and society receive from the organization’s ethical practices, community, service, efforts to promote cultural diversity, and concern for the natural environment.

Answer 1

social profit

Question 2

Rules of conduct for an organization.

Answer 2

business ethics

Question 3

Written standards of behavior to which everyone in the organization must subscribe.

Answer 3

codes of ethics

Question 4

A social movement that attempts to protect consumers from harmful business practices.

Answer 4

consumerism

Question 5

The rights of consumers to be protected by the federal government.

Answer 5

Consumer Bill of Rights

Question 6

A pricing practice in which different customers are charged different prices.

Answer 6

discriminatory pricing

Question 7

Advertising that clarifies or qualifies previous deceptive advertising claims.

Answer 7

corrective advertising

Question 8

Claims made in advertising of product superiority that cannot be proven true or untrue. (ex: worlds best coffee)

Answer 8

puffery

Question 9

A fee paid by a manufacturer to a retailer in exchange for agreeing to place products on the retailer’s shelves.

Answer 9

slotting allowance

Question 10

A management practice in which organizations seek to engage in activities that have a positive effect on society and promote the public good.

Answer 10

social responsibility

Question 11

A position taken by an organization to protect or enhance the natural environment as it conducts its business activities.

Answer 11

environmental stewardship

Question 12

A marketing strategy that supports environmental stewardship by creating an environmentally founded differential benefit in the minds of consumers.

Answer 12

green marketing

Question 13

Marketing activities in which firms seek to have their corporate identity linked to a good cause through advertising, public service, and publicity.

Answer 13

cause marketing

Question 14

A management practice that actively seeks to include people of different sexes, races, ethnic groups, and religions in an organization’s employees, customers, suppliers, and distribution channel partners.

Answer 14

cultural diversity

Question 15

The level of performance, reliability, features, safety, cost, or other product characteristics that consumers expect to satisfy their needs and wants.

Answer 15

quality

Question 16

A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement.

Answer 16

total quality management (TQM)

Question 17

Voluntary Standards. Criteria developed by the International Organization of Standardization to regulate product quality in Europe.

Answer 17

ISO 9000

Question 18

Standards of the International Organization of Standardization concerned with “environmental management” aimed at minimizing harmful effects on the environment.

Answer 18

ISO 14000

Question 19

The set of values, norms, and beliefs that influence the behavior of everyone in the organization.

Answer 19

corporate culture

Question 20

The overall patterns of change in the economy–including periods of prosperity, recession, depression, and recovery—that affect consumer and business purchasing power.

Answer 20

business cycle

Question 21

An indicator of future spending patterns as measured by the extent to which people are optimistic or pessimistic about the state of the economy.

Answer 21

consumer confidence

Question 22

The process of gathering and analyzing publicly available information about rivals.

Answer 22

competitive intelligence (CI)

Question 23

The portion of income people have left over after paying for necessities such as housing, utilities, food, and clothing.

Answer 23

discretionary income

Question 24

When firms offering different products compete to satisfy the same consumer needs and wants.

Answer 24

product competition

Question 25

When firms offering similar goods or services compete based on their brand’s reputation or perceived benefits.

Answer 25

brand competition

Question 26

A market situation in which one firm, the only supplier of a particular product, is able to control the price, quality, and supply of that product.

Answer 26

monopoly

Question 27

A market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers.

Answer 27

oligopoly

Question 28

A market structure in which many firms, each having slightly different products, offer unique consumer benefits.

Answer 28

monopolistic competition

Question 29

A market structure in which many small sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product.

Answer 29

perfect competition

Question 30

Legal documentation granting an individual or firm exclusive rights to produce and sell a particular invention.

Answer 30

patent

Question 31

Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income education, occupation, and family structure.

Answer 31

demographics