MKT 3013 Principles of Marketing Prof. Pravin Nath Study Guide for Exam 3 Chapters 4, 13 & 14, 15 & 16 What is the difference between laws and ethics? Laws are society’s values and standards that are enforceable in courts. Ethics are personal moral principles and values. The distinction can sometimes lead to the rationalization that if a behavior is within reasonable ethical and legal limits, then it is not really illegal or unethical. What are the influences on ethical behavior? Societal culture and norms, business culture and industry practices, Corporate culture and expec- tations. What is meant by caveat emptor? How did the Consumer Bill of Rights benefit consumers? Caveat Emptor is a legal concept meaning let the buyer beware. 1) right to safety 2) right to be in- formed 3) right to choose 4) right to be heard What is moral idealism? What is utilitarianism? Moral idealism is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome (favored by consumer interest groups and moral philoso- phers). Utilitarianism is a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the cost and benefits of the ethical behavior. What are the three concepts of social responsibility? What is a social audit? What is a code of ethics? Social Responsibility means that organizations are part of a larger society and are account- able to that society for their actions 1) Profit responsibility(maximize) 2) Stakeholder Responsi- bility(inform) 3) Societal responsibility( environment and gen. public). Social audit is a system- atic assessment of a firm ’ s objectives, strategies, and performance in terms of social responsibil- ity: Recognition of a firm ’ s social expectations, identification of social responsibility causes or programs consistent with company mission, determination of organizational objectives, specifica- tion of resources, evaluation. A code of Ethics is a formal statement of ethical principles and rules of conduct. Estimated that 86 percent of U.S. companies have some sort of code. What is green marketing? What is cause marketing? Efforts to produce, promote, and reclaim environmentally sensitive products- takes many forms. Cause Marketing is when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. What is the profit equation? What are the components of this equation? profit= Total Revenue-Total Cost= (Unit Price x Quantity sold) - (Fixed cost + Variable cost) What are some of the objectives and constraints associated with pricing? Customers must be willing to pay it, it must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product, and earn a profit for the company. Legal and regulatory constraints. Consumer demand for the product.
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