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Chapter 16 Test 4

Terms in this set (75)

The marketing concept is a philosophy of customer satisfaction and ________.
mutual gain
Many critics charge that the American marketing system causes ________ to be higher than they would be under more "sensible" systems.
prices
Critics charge that intermediaries ________.
are inefficient
A long-standing charge against intermediaries is that they mark up prices beyond the ________.
value of their services
Marketers respond to charges of high advertising and promotion costs unnecessarily increasing retail prices by arguing that advertising adds ________.
value by providing information about product availability
Most businesses try to deal fairly with consumers because ________.
businesses want to build customer relationships and businesses want repeat business (a and c)
Deceptive practices fall into three groups: deceptive ________, deceptive________, and deceptive ________.
pricing; promotion; packaging
Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product's ________ or ________.
features; performance
A major step in regulating "unfair or deceptive business acts and practices" was the enactment of the ________ in 1938.
Wheeler-Lea Act
Advertising "puffery" is a term for ________.
innocent exaggeration for effect
When critics claim that insurance, real estate, and used cars are sold, not bought, they are making accusations of the use of________.
high-pressure selling
Consumers Union, the nonprofit testing and information organization, publishes ________ to assist the consumer in choosing products and to encourage businesses to eliminate product flaws.
Consumer Reports
Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called?
planned obsolescence
Planned obsolescence might involve all of the following except which one?
the use of unsafe materials
Marketers respond to charges of planned obsolescence with all of the following except which one?
The product will eventually wear out anyway.
Critics claim that companies in the ________ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers.
consumer electronics and computer
Critics who believe that the American marketing system poorly serves disadvantaged consumers claim that the ________pay more for inferior goods.
urban poor
The presence of ________ in low-income neighborhoods makes a big difference in keeping prices down.
large national chain stores
When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are likely to be accused of the discriminatory practice of ________.
redlining
Critics have charged that the marketing system urges too much interest in ________.
material possessions
Critics of the American economic marketing system have charged that marketers have created a culture in which people are judged by what they ________.
own
A drive for wealth and possessions hit new highs in the ________, when phrases such as "greed is good" and "shop till you drop" seemed to characterize the times.
1980s and 1990s (c and d)
In the current decade, social scientists have noted a ________.
reaction against waste
The critics do not view the typical American interest in material things as ________.
a natural state of mind
Businesses hire ________ firms to use mass media to create materialistic models of the good life.
Madison Avenue
Critics say marketing is seen as benefiting ________ more than ________.
industry; consumers
Marketers are most effective when they appeal to ________ rather than when they ________.
existing wants; attempt to create new ones
The high failure rate of new products shows that companies are not able to ________.
control demand
The overselling of private goods results in ________, such as cars causing traffic jams, air pollution, injuries, and deaths.
social costs
To restore the balance between private and public goods, producers could be required to bear the full ________ costs of their operations.
social
For cars, "social costs" include all of the following except which one?
congestion tolls
Cultural pollution could be referred to as ________.
commercial noise
A major way to reverse the cultural pollution caused by marketing is to adjust ________.
advertising levels
In response to charges of ________, marketers point out that advertising makes much of television and radio free to users and also keeps down the cost of magazines and newspapers.
cultural pollution
Critics charge that a company's marketing practices can harm other companies and reduce competition among companies. Problems involved include all of the following except which one(s)?
marketing practices that confuse consumers
Which of the following is most responsible for the shrinking number of competitors in almost every major industry?
acquisition of competitors
Large marketing companies can use patents and heavy promotion spending to ________.
set up barriers for others wanting to enter the industry
Which of the following is not a potential advantage of the practice of acquisition?
Acquisitions require little government oversight.
Setting prices below cost, threatening to cut off business with suppliers, and discouraging the purchase of a competitor's products are all examples of ________.
predatory competition
The two major movements to keep business in line are environmentalism and ________.
consumerism
The first organized consumer movement in the United States took place in the early 1900s. It was fueled by all of the following conditions except which one?
unsafe merchandise
Ralph Nader is most closely associated with which of the following?
the consumerism movement of the 1960s
_____ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.
Consumerism
Which of the following is not a traditional sellers' right?
the right to promote any product to any audience
Many people believe that the balance of power in the buyer-seller relationship lies on the seller's side. Critics believe that buyers have too little education, protection, and ________ to make wise decisions when facing sophisticated sellers.
information
Consumer advocates call for all of the following additional consumer rights except which one?
The right to be protected from unwanted marketing messages.
Proposals related to the consumer's right to ________ include controlling the ingredients that go into certain products and putting consumer representatives on company boards to speak for consumer interests.
influence products and marketing practices in ways that will improve the "quality of life"
_____ is an organized movement of concerned citizens and government agencies to protect and improve people's living environment.
Environmentalism
Environmentalists assert that the marketing system's goal should be to maximize ________.
life quality
The ________ in the United States came about because of concern for the loss of the atmosphere's ozone layer, toxic wastes, litter, and the damage caused by strip mining and forest depletion.
first wave of modern environmentalism
_____ is a management approach that involves developing strategies that both sustain the environment and produce profits for the company.
Environmental sustainability
Environmental sustainability includes ________.
protecting the environment and producing profits (a and c)
Companies emphasizing ________ are developing "green marketing" programs that develop ecologically safer products, recyclable and biodegradable packaging, more energy-efficient operations, and better pollution controls.
pollution prevention
Which of the following is not a component of "green marketing"?
cradle-to-cradle practices
Minimizing pollution from production and all environmental impacts throughout the full product life cycle is called ________.
product stewardship
Design for environment (DFE) involves thinking ahead in the design stage to create products that are easier to reuse, recycle, or ________.
recover
What do most companies today focus on when it comes to protecting the environment?
investing heavily in pollution prevention
Xavier Rentals, Inc., is now looking into the future and working internally on the third level of environmental sustainability, which is called ________.
new clean technology
As international trade barriers come down and global markets expand, environmental issues are having ________ impact on international trade.
a greater
The philosophy of ________ holds that a company's marketing should support the best long-run performance of the marketing system.
enlightened marketing
Innovative marketing is ________.
a principle of enlightened marketing, based on the consumer's point of view, the attempt to continuously seek product and marketing improvements (a, b, and c)
Which form of enlightened marketing requires that a company seek real product and marketing improvements?
innovative
Some firms define their purpose in narrow product terms. Others that define their purpose in broad social terms follow ________.
sense-of-mission marketing
When an enlightened company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society's long-run interests, it is practicing ______ marketing.
societal
What are deficient products?
products that have neither immediate appeal nor long-run benefits
A company that makes products that give high immediate satisfaction but may hurt consumers in the long run makes ________ products.
pleasing
Examples of pleasing products include ________.
cigarettes and junk food
Which of the following is the best example of a desirable product?
junk food
In societal marketing, the ideal goal for companies is to turn all of their products into ________ ones.
desirable ones
The challenge for makers of which type of product is to add long-run benefits without reducing the product's pleasing qualities?
pleasing
The challenge for makers of which type of product is to add some pleasing qualities so that it will become more desirable in the consumers' minds?
salutary
Companies must decide what principle they should use as a guide on issues of ethics and social responsibility. Which one of the following is not a common philosophy to accomplish this end?
Let society decide.
One major issue in foreign trade is bribery. Bribery and corruption are common in all of the following countries except ________.
New Zealand
The American Marketing Association (AMA) has created a code of ethics that includes all but which of the following ethical values?
competitiveness
Within a company, ethics and social responsibility require a _________
total corporate commitment
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