Term
| Who does Marketing affect? |
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Definition
| All people, in all firms, in all industries, in all countries. |
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Term
| What kind of businesses provide new jobs and why? |
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Definition
| Small businesses provide the majority of new jobs in the US because globalization has caused competitive pressures on large firms. This makes small businesses more attractive and viable. |
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Term
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Definition
| The activity that creates, communicates, delivers, and exchanges offerings that benefit the organization, its stakeholders and society at large. This is a broad definition -- broader than advertising or personal selling. |
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Term
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Definition
| The trading of things of value between a buyer and a seller so that each is better off after the trade. Exchange is the key to discovering and satisfying prospective customers' needs and wants. |
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Term
| What key individuals and groups influence a company's marketing efforts? |
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Definition
- The organization itself
- Suppliers
- Customers
- Shareholders
- Other organizations
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Term
| What key environmental forces affect marketing? |
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Definition
- Social
- Economic
- Technological
- Competitive
- Regulatory
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Term
| What 4 things must be present for marketing to occur? |
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Definition
- Two or more individuals or organizations with needs that are unsatisfied.
- Both the desire and the ability to satisfy those needs.
- A manner in which the parties can communicate.
- Something that the parties can exchange.
Example:
(1) You might need a book and a bookstore owner might need a customer to sell it to. (2) You have the money to buy the book and the bookstore has the book to sell to you. (3) You have to know that the book exists and the store owner has to know that you are interested so he can stock the book. (4) You exchange money for the book. Both you and the bookstore are better off because you have something you both want and need. |
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Term
| Is discovering consumer needs an easy task? Why or why not? |
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Definition
| No, discovering consumer needs is not easy, because consumers may not be able to describe what they want and it may be difficult for marketers to ask the right questions to discover their wants. |
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Term
| Do new products fail or succeed? Why? |
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Definition
| One study showed that 94% of new products failed in the long run. This is because marketers did not understand the needs and wants of customers. |
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Term
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Definition
| A need occurs because a person is deprived of the basic necessities of life, like food and water. |
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Term
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Definition
| A want occurs when a person's knowledge, culture and personality create a need. |
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Term
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Definition
| A market is a group of people with both the desire and the ability to buy a specific product. |
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Term
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Definition
| One or more specific groups of potential consumers that organizations pick to which the organization directs its marketing program. |
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Term
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Definition
| The manager's controllable factors that can be used to solve a marketing problem. |
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Term
| What are the "four P's," or the four elements, of the marketing mix? |
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Definition
- Product - A good, idea or service that satisfies the needs of the consumer.
- Price - That which is exchanged for the product.
- Promotion - A way for the buyer and seller to communicate.
- Place - A way for the seller to get the product into the consumer's hands.
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Term
| How do environmental factors affect marketing? |
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Definition
| They are uncontrollable and can restrict the marketing opportunities of an organization. They can also expand marketing opportunities. Studies show that a forward-looking marketing effort can affect environmental factors. This is a departure from the old belief that environmental factors were rigid and absolute constraints. |
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Term
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Definition
The unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service. By focusing on customer value, firms gain customer loyalty. It's a lot easier for firms to keep old customers than to find new ones. |
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Term
| What is relationship marketing? Is it easy? |
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Definition
Relationship marketing involves linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. It is difficult to engage in relationship marketing because it is costly and time consuming to tailor goods and services to individual customers and have personal marketing rather than marketing for a large crowd. But is does create customer value when successful. |
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Term
| What is a marketing program? |
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Definition
| A plan that integrates the marketing mix to provide a good, a service or an idea to prospective buyers. |
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Term
| How many stages are in a firm's life? What are they? |
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Definition
There are four stages in a firm's life: - The Production Era
- The Sales Era
- The Marketing Concept Era
- The Customer Era
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Term
| What is the production era? |
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Definition
| The production era is when the products sell themselves because goods are scarce and customer demand is high. The organization focuses on production, not marketing. |
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Term
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Definition
| Competition grows as firms are able to produce more then their customers can consume. The firm hires more salespeople to find more buyers. |
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Term
| What is the marketing concept era? |
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Definition
| This is when marketing is introduced at the beginning of the production cycle and integrated into every ohase of the business. |
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Term
| What is the marketing concept? |
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Definition
| The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals. |
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Term
| What is the customer era? |
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Definition
| Firms are continuously attempting to satisfy consumers' high expectations. |
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Term
| What is market orientation? |
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Definition
When a firm focuses on continuously collecting information about consumers' needs, sharing this information across departments and using it to create customer value. Everything is oriented towards the customers and the target market. |
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Term
| What is Consumer Relationship Management (CRM)? |
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Definition
| The process of identifying prospective buyers, understanding them intimately, and fostering favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the makretplace. |
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Term
| What is the customer experience? |
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Definition
| The internal response customers have to all aspects of an organization and its offerings. It depends on direct and indirect contacts. |
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Term
| What are direct contacts? |
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Definition
| Direct interaction the customer has with the organization when they buy or use the product or get it serviced. |
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Term
| What is indirect contact? |
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Definition
| Interaction the customer has with the organization in the form of word-of-mouth from news reporters, reviewers and customers. |
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Term
| What is the societal marketing concept? |
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Definition
| The view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. |
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Term
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Definition
| The study of the collective flow of a nation's goods and services to benefit society. |
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Term
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Definition
| How an organization directs its marketing activities and allocates its resources to benefit its customers. |
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Term
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Definition
| Every organization markets in different ways and in different places. This includes government organizations and nonprofits. |
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Term
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Definition
- Goods - Physical objects
- Services - Intangible items
- Ideas - Intangibles involving thoughts about actions or causes.
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Term
| Who benefits from marketing? |
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Definition
- Consumers - They are provided with choices that give them satisfaction and quality of life.
- Organizations - They make money and create jobs.
- Society - They benefit from the enhanced competition that marketing causes.
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Term
| Who buys and uses what is marketed? |
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Definition
| Both organizations and individuals respond to marketing. |
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Term
| What are ultimate consumers? |
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Definition
| The people who use the goods and services purchased for a household. |
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Term
| What are organizational buyers? |
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Definition
| Manufacturers, wholesalers, retailers and government agencies that buy goods and services for their own use or for resale. |
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Term
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Definition
| The benefit or customer value received by users of the product. There are 4 different types. |
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Term
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Definition
| Value from the production or alteration of a good or service. |
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Term
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Definition
| Value of having a good or service available where needed. |
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Term
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Definition
| Value of having a good or service available when needed. |
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Term
| What is possession utility? |
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Definition
| Value of making an item easy to purchase so customers can use it. |
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Term
| How does marketing create utility? |
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Definition
| By providing the good or service at the right place and the right time for the right consumer. |
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Term
| What is environmental scanning? |
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Definition
| The process of continually acquiring information on events occurring outside of the organization to identify and interpret trends. |
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Term
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Definition
| The demographic characteristics of a population and its values. |
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Term
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Definition
| Characteristics used to describe a population like gender, age, ethnicity, income and occupation. |
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Term
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Definition
| People born from 1977 to 1994, who exert influence on sports, music, computers, video games, and cell phones. Many of these individuals are just turning 21, and marketers will have to vie for their customer loyalty as they get jobs, make major purchases, and become an increasingly important group of consumers. Many are becoming entrepreneurs. They are highly optimistic and want to make a difference in the world. |
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Term
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Definition
| The group of children born between 1946 and 1964, who are growing older and are receptive to anything that makes them feel younger. These people account for over half of all purchases. |
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Term
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Definition
| People born from 1965 to 1976, who are generally self-reliant, entrepreneurial, supportive of racial and ethnic diversity, and very well-educated. This is becoming the new parent market as baby boomers become grandparents. |
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Term
| What is a blended family? |
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Definition
| The merging of two previously separated units into a single household. The high divorce rate has given rise to these types of families. |
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Term
| What is a metropolitan statistical area? |
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Definition
| The US Census Bureau's designation for an area with at least one urbanized area of 50,000 or more people and adjacent territory that is highly socially and economically integrated. |
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Term
| What is a Micropolitan statistical area? |
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Definition
| The US Census Bureau's designation for an area with at least one urban cluster of between 10,000 and 50,000 people and adjacent territory that is highly socially and economically integrated. |
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Term
| What are multicultural marketing programs? |
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Definition
| Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences and the lifestyles of different races. |
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Term
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Definition
| A social force that incorporates the set of values, ideas and attitudes that are learned and shared among the members of a group. |
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Term
| What is value consciousness? |
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Definition
| The concern for obtaining the best quality, features and performance of a product or service at a given price. |
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Term
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Definition
| The income, expenditures, and resources that affect the cost of running a business or a household. |
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Term
| What are the two major macroeconomic conditions and what are they? |
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Definition
- Inflationary periods - The cost to produce and buy products rises as prices rise.
2. Recessionary periods - Times of slow economic activity, decreased production, increased unemployment and less cash in consumers' pockets. |
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Term
| What are two ways that companies can measure consumer expectations of the economy? |
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Definition
- Consumer Confidence Index
2. Index of Consumer Sentiment |
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Term
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Definition
| The total amount of money made in one year by a person, household or family unit. |
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Term
| What is disposable income? |
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Definition
| The money a consumer has left after paying taxes to use for food, shelter, clothing and transportation. |
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Term
| What is discretionary income? |
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Definition
| The money a consumer has left over after paying for taxes and necessities. This money is spent on luxury items. |
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Term
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Definition
| Inventions or innovations from applied science or engineering research. |
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Term
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Definition
| An information and communication based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings. |
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Term
| What is electronic commerce? |
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Definition
| Any activity that uses some kind of electronic communication in the inventory, exchange, advertisement, distribution and payment of goods and services. |
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Term
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Definition
| A private internet/web-based network that is used within the boundaries of an organization and that may or may not be connected to the larger internet. |
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Term
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Definition
| Internet based technologies that permit communication between a company and its suppliers, distributors and other partners. |
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Term
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Definition
| The alternative firms that could provide a product to satisfy a specific market's needs. |
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Term
| What is pure competition? |
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Definition
| When each company has a similar product. |
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Term
| What is monopolistic competition? |
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Definition
| When many firms compete against each other be selling substitutable product. |
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Term
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Definition
| When just a few companies control the majority of industry sales. |
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Term
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Definition
| When a product is sold by one firm only. |
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Term
| What are barriers to entry? |
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Definition
| Business practices or conditions that make it difficult for new firms to enter the market. |
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Term
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Definition
| The restrictions state and federal laws place on businesses with regard to the conduct of their activities, which benefit both businesses and their consumers. |
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Term
| What is the Sherman Antitrust Act? |
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Definition
| This prohibits contracts, combinations or conspiracies in restraint of trade and actual monopolies, or attempts to monopolize any part of trade or commerce. |
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Term
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Definition
| It forbids specific anti-competitive actions. |
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Term
| What is the Robinson-Patman Act? |
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Definition
| It makes price discrimination unlawful if it substantially lessens competition or helps to create a monopoly. |
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Term
| What is company protection? |
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Definition
| Patent and copyright laws to help companies protect their intellectual property. Patents protect the use of new and novel products and copyright law protects literary, dramatic, musical or artistic works. The Digital Millenium Copyright Act was enacted to improve copyright protection of digital products. |
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Term
| What is consumer protection? |
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Definition
| Laws that protect consumers like the Infant Formula Act, the Fair Packaging and Labeling Act, and the Consumer Product Safety Act. |
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Term
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Definition
| A grassroots movement started in the 1960s to increase the influence, power and rights of consumers in dealing with institutions. It happens when consumers decide to boycot a business, etc. |
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Term
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Definition
| A specific kind of trademark abuse in which individuals protest a company's practices with a knockoff of their logo or trademark. An example is the Starbucks logo with "Evil Empire" on it. |
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