MARK 3001: Exam 1
55 Cards in this Set
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corporate social responsibility
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a business's concern for society's welfare.
both long-range interests of the company and the company's relationship with the society are considered.
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sustainability
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socially responsible companies will outperform their peers by focusing on the world's problems and using them as opportunities to build profits and help the world at the same time
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pyramid of corporate social responsibility
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philanthropic < ethical < legal < economic.
at the same time that a firm pursues profits (economic), it is expected to obey laws (legal) to do what is right, just fair (ethical), and to be a cood corporate citizen (philanthropic)
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ethics
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the moral principles or values that generall govern the conduct of an individual or group. also, a standard of behavior by which conduct is judged. standards that are legal may not always be ethical
ethics consist of personal moral principles and values rather than societal perceptions
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morals
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the rules people develop as a result of cultural values and norms.
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preconventional morality
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most basic level of morality, childlike
based on what will be immediately punished or rewarded
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conventional morality
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based on viewpoint of the society.
loyalty and obedience to the organization are paramount. a marketing decision maker would be concerned only with whether the proposed action is legal and how it will be viewed by others.
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post conventional morality
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morality of the mature adult.
is it right in the long-run?
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ethical decision-making factors
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extent of ethical problems within organization.
top management actions on ethics. potential magnitude of consequences. social consensus. probability of a harmful outcome. length of time between the decision and the onset of consequences. number of people to be affected.
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code of ethics
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guideline to help marketing managers and other employees make better decisions
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what is expected of marketers
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1. do no harm
2. foster trust in the marketing system 3. embrace, communicate, practice fundamental values to improve consumer confidence in the integrity of the marketing exchange system
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ethical values
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honesty
responsibility fairness respect openness citizenship
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marketing mix
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4 P's
product place promotion price
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target market
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defined group that managers feel is most likely to buy a firm's product
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external environmental factors (marketing environment)
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demographic
social factors (attitudes, values, lifestyles) economic (income, economic health of country) technological political and legal 9laws and rulings) competitive (#, size, and type of competitors)
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marketing environment
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uncontrollable elements outside of any organization that may affect its performance
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characteristics of product quality
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1. reliability
2. durability 3. easy maintenance 4. ease of use 5. trusted brand name 6. low price
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demography
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study of poeples vital statistics, like age, race, ethnicity and location
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tweens
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per-mid teens, 29 million.
tune out commercials, have attitudes, and access to information.
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gen y
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late teens/20s, 60 million.
impations, family oriented, divers, good time managers.
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gen X
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30s/early 40s. 40 million.
latchkey, of divorced parents, time pressures so they resort to outsourcing
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baby boomers
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mid-40s-early 60s, 77 million.
active, affluent, long life expectancy, vigorous consumers
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business cycles
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prosperity: high income/employment/production.
recession: falling income/employment/production. recovery: rising income/employment/production. depression: low income/employment/production.
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sherman act, clayton act, FTC act
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regulate competitive environment
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robinson-patman act
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regulate pricing practices (charging different prices to different buyers or merch of same grade or quantity
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wheeler-lea act
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controls false advertising
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federal trade commission
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prevents unfair methods of competition in commerce
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consumer product safety commission
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protects consumer safety in and around their homes.
sets mandatory safety standards for products consumers use
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food and drug administration
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enforces regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products
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direct competition
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similar/same product.
brand.
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indirect competition
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product.
substitutable items - perform the same function.
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comptition for discretionary spending
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other possible uses for the money
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how many people live in the world?
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6.8 billion
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# of people in US?
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3.1 million
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percent of people over 25 in US who have graduated high school
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85%, 27% college
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% of US homes in which primary language other than English is spoken
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17%
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Median age of first marriage
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men: 27
women: 25
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% personal savings rate in US
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about 6%
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% of undergrads who graduate with federal student loans? Avg. amount owed?
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about 66%, $27,500
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% people over 65 in US
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12.5%
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% US citizens under 18
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24.8%
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consumer behavior
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describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services
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consumer decision-making process
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1. need recognition
2. information search 3. evaluation of alternatives 4. purchase 5. post-purchase behavior
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need recognition
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result of an imbalance between actual and desired states. consumer decision-making
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stimulus
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any unit of input affecting one or more of the five senses: sight, smell, hearing, touch, taste.
internal stimuli: occurrences you experience like hunger or thirst. external stimuli: influences from an outside source, like recommendation or advertisement.
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internal information search
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the person recalls info stored in memory
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external information search
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seeks info in the outside environment
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nonmarketing-controlled information source
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not associated with marketers promoting a product. personal experiences, personal sources (family, friends), and public sources (consumer reports).
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marketing-controlled information source
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biased toward a specific product because it originates with marketers promoting that product. including mass-media advertising, internet, sales promotion, salespeople, product labels and packaging.
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evoked set
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aka consideration set.
the consumers most preferred alternatives
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post-purchase behavior
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how well ones expectations are met determines whether the consumer is satisfied or dissatisfied with the purchase.
cognitive dissonance is included
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cognitive dissonance
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when people recognize inconsistency between their values and their behavior. consumers try to reduce cognitive dissonance by justifying their decision
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involvement
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the amount of time and effort the buyer invests in the search, evaluation and decision process of consumer beavior
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routine response behavior
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frequently purchased, low-cost goods and services. low involvement products
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limited decision making
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typically occurs whn a consumer has previous product experience by is unfamiliar with the current brands available
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MARK 3001: Exam 1