Chapter 3

• What are the 5 environmental forces?

  (1) Social

  (2) Economic

  (3) Regulatory

  (4) Competitive

  (5) Tecnological
• What is environmental scanning?

  Process of acquiring outside info to identify trends
• What are social forces?

   Demographic characteristics of the population and its culture
• What are demographics?

  Population characteristics that include age, gender, race, income, and occupation
• What is Culture?

  Set of values, ideas, and attitudes learned and shared among members of a group
• What are the economic forces?

  Pertains to the income, expenditures, and resources that affect the cost of running a business and household
• What is Macroeconomics?

  Performance of an economy
• What is inflation?

  Price level changes (increase)
• What is recession?

  Period of declining economic activity
• What is Microeconomics?

  Study of individual economic units
• What is Gross income?

  Total income made by a person per year before deductions.
• What is disposable income?

  Income available for spending and saving after taxes and essential expenses have been deducted.
• What is discretionary income?

  Income available after necessities and taxes are paid
• What is technological force?

  Inventions or innovations from research
• List some technological forces?

  • Authentication based on facial and fingerprint recognition
  • Artificial intelligence.
  • Wearable technology
  • Digital assistants.
  • Smart speakers.
  • Blockchain digital ledger.
• What is marketspace?

  Online marketplace that has info communicated through electronic exchange
• What is Electronic Commerce? (e-commerce)


  Activities that use online buying and selling
• What is Internet of Things (IoT)?

  Interconnected devices
• What are competitive forces?

  Alternative firms that could provide a product to satisfy a specific market’s needs
• What are the 4 basic forms of competition?

  (1) Pure competition - many sellers with similar products

  (2) Monopolistic - Many sellers with substitutable products

  (3) Oligopoly - Few sellers control majority of sales

  (4) Pure Monopoly - One firm sells product
• What are the regulatory forces?

  Laws, regulations that are placed on a business with regard to the conduct of its activities.
• How do we protect/regulate competition?

  (1) Sherman Antitrust act

  (2) Clayton Act

  (3) Robinson Act
• What are some product legislation for regulation?

  (1) Patents

  (2) Copyright, etc
• What is consumerism?

  Movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions
• What is self-regulation?

  Industry attempts to protect itself
• What are some ethic exchanges?

  • caveat emptor - let buyer be aware
  • Consumer bill of rights - safety of consumers to be heard and informed
• What are the two unethical behaviors?

  (1) Economic Espionage - Trade secrets or proprietary information about a company’s competitors

  (2) Corruption
• What is moral idealism?

  Personal moral philosophy that considers certain individual rights or duties as universal, regardless of outcome
• What is Utilitarianism?

  Personal moral philosophy that focuses on “the greatest good for the greatest number”
• What are the 3 types of social responsibility?

  (1) Profit Responsibility - Obligation to maximize profits for stockholders

  (2) Stakeholder responsibility -Obligations to those who can affect achievement of objectives

  (3) Societal responsibility - Obligations to preserve environment and to the general public.
• What are parts of the societal responsibility?

  (1) Triple Bottom Line - Improve People, planet, profit

  (2) Sustainable marketing - Meets todays needs without compromising future generations

  (3) Green Marketing - Promote the environment

  (4) Cause Marketing - Charitable contributions of the firm
• What is sustainable development?

  Conduct business to protect the environment while making economic progress