Marketing Honors Spell Chapters 3-4 Test

Component Lifestyles

• Consumers prioritize goods and services that cater to individual diverse needs over traditional lifestyle patterns.

Demographic Statistics

• Key demographics include age, race, ethnicity, income, zip code, educational level, occupation, marital status, and location.

Tweens

• A demographic group aged 9-12 with significant developmental needs, high purchasing power, and ability to influence parental spending.

Teens

• Often pass technology trends down to their parents, showcasing generational tech influence.

Generation Z

• Born from 1995 to 2010, this generation is notably engaged with social media and social impact initiatives.

Millennials

• Born between 1979 and 1994, they are characterized by frequent job changes and perceptions of laziness and disloyalty.

Generation X

• Comprising individuals born from 1965 to 1978, they value independence, education, and adaptability while often managing caregiving for both children and aging parents.

Baby Boomers

• This large demographic group tends to outspend younger adults and is influenced heavily by traditional advertising methods.

Hispanic Americans

• This group values their original culture, is often bilingual, and frequently resides in multigenerational households.

African Americans

• As the youngest ethnic group with significant cultural influence, they prioritize technology and social justice in their purchasing decisions.

Asian Americans

• Benefitting from high disposable incomes and education levels, marketers see them as a key target demographic requiring persuasion to make purchases.

Purchasing Power

• Defined by the correlation of income with the relative cost of a designated set of goods and services across various geographic regions.

Primary Influence on Earning

• Education plays a crucial role in determining earning potential.

Inflation

• Refers to the decrease in the value of money, measured as a percentage reduction from the previous year.

Recession

• Characterized by negative economic growth leading to reduced demand for goods and services.

Importance of Innovation

• Critical for capturing market share and ensuring business growth.

Embracing Trends

• Encourages entrepreneurship, effective environmental scanning, and responsiveness to market changes.

Basic Research

• Focuses on pure research aimed at confirming theories or deepening understanding of concepts, especially in AI, IT, and pharmaceuticals.

Applied Research

• Targets the development of new or enhanced products.

Legislative Action's Marketing Impact

• Affects labeling, research, and design practices within marketing strategies.

FDA (Food and Drug Administration)

• A federal agency that enforces regulations against the sale of contaminated or misbranded food and drug products.

CPSC (Consumer Product Safety Commission)

• Oversees the safety and health standards for consumer products in homes.

FTC (Federal Trade Commission)

• Prevents unfair competitive practices among businesses.

FCPA (Foreign Corrupt Practices Act of 1977)

• Legislation prohibiting bribery in business operations.

Competitive Factors

• Involves global competition, regulatory restrictions among competitors, pricing strategies, and environmental scanning.

Morals

• Derived from cultural norms and values, forming the basis of personal ethical behavior.

Preconventional Morality

• Motivated by self-interest, focusing on avoiding punishment and seeking rewards.

Conventional Morality

• Driven by societal expectations, including concerns about legality and the opinions of others.

Postconventional Morality

• Characterizes mature adults who prioritize internal principles over societal judgment.

Pyramid of Social Responsibility

• Comprised of economic, legal, ethical, and philanthropic dimensions.

Corporate Social Responsibility

• Reflects businesses' commitment to societal welfare and ethical practices.

Stakeholder Theory

• Advocates for considering the interests of all stakeholders in the company's operations for ethical responsibility.

Framework for Ethical Decision Making

• Evaluates the extent of ethical challenges within an organization.