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A "buy" decision that involves non-objective factors and can lead to "irrational" decisions based on....

emotional motives

...goods are inexpensive products that are purchased often and with little expenditure of time or effort.

convenience

...goods are expensive and rarely purchased. The consumer is usually unwilling to consider alternatives.

specialty

The group of products that a company makes available for sale, whether consumer, industrial or both, is known as the company's product...

mix

group of similar products intended for a group of similar buyers

product line

a company's percentage of the total market sales for a specific product type.

market share

pricing above the market plays on the common assumption that...

higher price means higher quality

if a firm's goal were to place a new product into the hands of as many consumers as quickly as possible, then the best pricing strategy would be .....

penetration training

pricing a product at a lower price in a foreign market than in its home market

dumping

technique used to sell a product.

promotion

paid, nonpersonal communication used by an identified sponsor to inform an audience about a product.

advertising

The sending of fliers or other types of printed advertisements to consumer's homes

direct mail

an arrangement of advertisements in selected media to reach targeted audiences.

advertising campaign

an independent company that provides some or all of a client firm's advertising needs.

advertising agency

An employee who detects and tries to put an end to a company's unethical, illegal, and/or socially irresponsible actions by publicizing them is referred to as a(n)

whistle-blower

occurs when someone uses confidential information to gain from the purchase or sale of stocks

insider-trading

describe how an organization will achieve their purpose in the environments in which they conduct their business.

mission Statements

study of consumer needs and wants, and the ways in which sellers can best meet them

marketing Research

a market research technique using a questionnaire that is either mailed to individuals or used as the basis for telephone or personal interviews.

survey

The difference between revenues and expenses

profits

provides for the private ownership of the factors of production and also encourages entrepreneurship by offering profits as an incentive?

capitalism

The process of converting government enterprises into privately owned companies

privatization

The willingness and ability of buyers to purchase a product, good, or service

demand

refers to the willingness and ability of producers to offer a good or service for sale.

supply

"Buyers will purchase (demand) more of a product as its price drops and less of a product as its price increases." This is referred to as...

the law of demand

The concept that producers will offer more of a product for sale as its price increases and less as its price decreases is known as...

the law of supply

occurs when the quantity supplied exceeds the quantity demanded

surplus

Exists when an industry or market has only one producer

monopoly

philosophy that says that the government should not interfere in the economy, but should instead let business function without regulation according to its own "natural" laws

Laissez-faire

introduced the moving assembly line and ushered in the production era

Henry Ford

the pattern of short-term ups and downs in an economy

business cycle

results when a country exports more than it imports

Trade deficit

the amount of money that the government owes its creditors

national debt

the economic condition characterized by widespread increased prices without increased purchasing power.

inflation

a prolonged and deep recession

depression

form of business is owned and usually operated by one person who is responsible for its debts

sole proprietorship

a business with two or more owners who share in the operation of the firm and are financially responsible for its debts

general partnership

has stock that is widely held and available for sale to the general public

public corporation

owners of a corporation are

stockholders

elected by stockholders to oversee corporate management

the board of directors

Top managers hired by the board of directors to run the corporation on a day-to-day basis are called

corporate officers

Corporations sell shares in the business called

stock

Profits are distributed to stockholders in the form of

dividends

The governing body of a corporation is its

Board of Directors

The person responsible for the firm's overall performance is the

CEO (Chief Executive Officer)

As more and more firms engage in international business, the world economy is fast becoming a single interdependent system; a process called

globalization

products made or grown abroad and sold in the U.S. are called

imports

products made or grown in the U.S. and shipped for sale abroad are called

exports

The total economic value of all products that a nation imports minus the total economic value of all products that it exports is called a country's

balance of trade

When a country's imports exceed its exports, the nation has a

Trade Deficit

When a country's exports exceed its imports, the nation has a

Trade surplus

The rate at which the currency of one nation can be exchanged for that of another is called

Exchange rate

The United States government forbids the importation of cigars from Cuba into the United States. This government order is known as a(n)

Embargo

tax on imported goods or products

tariff

refers to ethical or unethical behaviors by a manager or employee of an organization

business ethics

After Hurricane Andrew devastated South Florida, some retailers charged over $100 per sheet for plywood. This was an example of

Price gouging

Written commitments wherein companies formally acknowledge their intent to do business in an ethical manner are called

Codes of Ethics

The way in which a business tries to balance its commitments to groups and individuals in its social environment is called

Social responsibility

what is a recession?

-unemployment increase
-standard of living decrease

advantages to franchising

-access to financial & managerial help
-reduce chance of failure

disadvantages to franchising

-large set-up cost
-percentage of income goes to parent company.

why might a company decide not to conduct business internationally?

-no international demand for product
-government regulations
-product can't be adapted to fit means of market

how can companies promote ethical behavior?

-have a written code of ethics
-ethics training programs
-have an ethical hotline
-promote whistle-blowers

identify the four market segmentation

-demographic
-geographic
-psychographic
-behavioral

what are the 4 elements of the market mix?

-price
-place
-product
-promotion

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