The Better Business Bureau (BBB) uses moral suasion to get members to comply with its standards. Companies, which join the BBB voluntarily, must agree to follow these standards before they are allowed to display the BBB logo.
The Trademark Law Revision Act (1988) allows companies to secure rights to a name before its actual use by declaring an intent to use the name. In 2003, the United States agreed to participate in the Madrid Protocol, which is a treaty that facilitates the protection of U.S. trademark rights. Also, the U.S. Supreme Court recently ruled that a company may obtain trademarks for colors associated with their products. Finally, the Federal Dilution Act of 1995 prevents someone from using a trademark on a noncompeting product (such as the "Cadillac" of brushes).
Answer: Sherman Antitrust; Clayton
Answer: large
(1) Consumers can now assess value on the basis of other dimensions, such as quality, service, and relationships, due to the decline in the cost of technology.
(2) Technology provides value through the development of new products.
(3) Technology has changed the way existing products are produced through recycling and precycling.
Disposable income is the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation. Discretionary income is the money that remains after paying for taxes and necessities and is used for luxury items.
Many Americans desire and practice sustainability to preserve the environment. Specifically, these consumers buy hybrid cars and energy-efficient light bulbs. Consumers also prefer brands that have a strong link to social action (like Ben & Jerry's—see Chapter 2). Companies are responding to this consumer trend by using renewable energy in producing and reducing packaging of their products.
Multicultural marketing programs consist of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.
The reasons for developing these programs are
(1) The racial and ethnic diversity of the United States is changing rapidly due to the increases in the African American, Asian, and Hispanic populations, which increases their economic impact.
(2) An accurate understanding of the culture of each group is essential if marketing efforts are to be successful.
(3) Based on an analysis of population demographic data, racial and ethnic groups tend to be concentrated in specific geographic regions.
(1) Baby boomers are those among the U.S. population born between 1946 and 1964. These Americans are growing older and are the wealthiest generation in U.S. history. (2) Generation X are those among the 15 percent of the U.S. population born between 1965 and 1976. These well-educated Americans, also known as the baby bust cohort because of declining birth rates, have a collective net worth that is less than the baby boomer generation. (3) Generation Y are the 72 million Americans among the U.S. population born between 1977 and 1994.
The rising birth rate of this "baby boomlet" cohort is the result of baby boomers having children. A subset of this generational cohort are millennials, who are younger Americans born since 1994. Because each generational cohort has its distinct attitudes and behaviors, marketers have developed generational marketing programs for each of them
Regulation exists to protect companies and consumers. Legislation that ensures a competitive marketplace includes the Sherman Antitrust Act. Product-related legislation includes copyright and trademark laws that protect companies and packaging and labeling laws that protect consumers.
Pricing- and distribution-related laws are designed to create a competitive marketplace with fair prices and availability. Regulation related to promotion and advertising reduces deceptive practices and provides enforcement through the Federal Trade Commission. Self-regulation through organizations such as the Better Business Bureau provides an alternative to federal and state regulation.
There are four forms of competition: pure competition, monopolistic competition, oligopoly, and monopoly. The key components of competition include the likelihood of new competitors, the power of buyers and suppliers, and the presence of competitors and possible substitutes. While large companies are often used as examples of marketplace competitors, there are 27.5 million small businesses in the United States, which have a significant impact on the economy.
Technological innovations can replace existing products and services. Changes in technology can also have an impact on customer value by reducing the cost of products, improving the quality of products, and providing new products that were not previously feasible. Electronic commerce is transforming how companies do business.
Economic forces include the strong relationship between consumers' expectations about the economy and their spending. Gross income has remained stable for more than 40 years although the rate of saving has fluctuated, declining to zero before rising to 6 percent recently.
Demographic information describes the world population; the U.S. population; the generational cohorts such as baby boomers, Generation X, and Generation Y; the structure of the American household; the geographic shifts of the population; and the racial and ethnic diversity of the population, which has led to multicultural marketing programs. Cultural factors include the trend toward fewer differences in male and female consumer
behavior and the impact of values such as sustainability on consumer preferences.
Many businesses operate in environments where important forces change. Environmental scanning is the process of acquiring information about these changes to allow marketers to identify and interpret trends. There are five environmental forces
businesses must monitor: social, economic, technological, competitive, and regulatory. By identifying trends related to each of these forces, businesses can develop and maintain successful
marketing programs. Several trends that most businesses are monitoring include the growth of social networks, the increasing economic impact of Asia and Latin America, and the growth of online privacy advocacy and regulation.
Answer:
issue a cease and desist order
order corrective advertising
Answer: price
Answer: an alternative to government control in which industry attempts to police itself
Answer: The Federal Trade Commission
tying arrangements
requirement contracts
exclusive dealings
exclusive territorial distributorships