Chapter 1
Marketing – The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.
Customers – the purchasers of organizations products; the focal point of all marketing activities.
Target Market – a specific group of customers on whom an organization focuses its marketing efforts.
Marketing Mix – four marketing activities; Price, Product, Distribution, Promotion that a firm can control to meet the needs of customers within its target markets.
Product – a good, service, or idea.
Exchange – the provision or transfer of goods, services, or ideas in
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Recovery – a stage of the business cycle in which the economy moves from recession or depression toward prosperity.
Buying Power – resources, such as money, goods, and services that can be traded in an exchange.
Income – for an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period.
Disposable Income – after-tax income.
Discretionary Income – disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter.
Wealth – the accumulation of past income, natural resources, and financial resources.
Willingness to Spend – an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces.
Federal Trade Commission (FTC) – an agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling.
Better Business Bureau – a system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms.
National Advertising Review Board (NARB) – a self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an
The Poverty Line is the level of income below which the income of the household or individual is
There are a handful of advertising and sales issues, as well as one complaint regarding a delivery issue. The disturbing thing about these complaints is the fact that only 22 of them are listed as being resolved to the satisfaction of the complainant. Most of the billing and collection issues are involving the customer not being able to cancel their services as they continue to be billed for services they have tried to cancel. It appears that involving the BBB does eventually prompt the company to respond with a cancellation and full refund of any amount that was paid after the initial cancellation date. However, we feel a customer shouldn't have to resort to launching a complaint with the BBB in order to get results and that The Company Corporation should attempt to correct this issue that continues to blemish their
If you aren't in business, you may have no idea what the BBB is, but if you are, it is either something you love or are terrified of. The better business bureau is an organization that analyzes just about every single business that is in operation, regardless of how big or small they are. This gives other people an understanding of how reputable you are and whether or not they want to do business with you, which is why your score is incredibly important, despite whether you like the bureau or not. If you have shady business practices, engage in any sort of illegal activity that gets reported, or flat out do not do good business, your BBB score is going to suffer and anyone that wants to find that information is going to be able to find it. When business deals are made between several companies, the first thing they are going to do is look up their BBB score to size them up. A lot of places won't even talk to you if you have a low BBB score, which can be a great thing and can be a bad thing at the same time.
Businesses of today, are under no obligation or commitment to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation, which may cause problems for the business in the future. To be accepted or accredited by the Better Business Bureau, a business must take the time to apply for accreditation and it is at this point that business meets accreditation standards. This will include a commitment to make a good faith effort to resolve many of the customer’s complaints. Better Business Bureau must pay a fee for accreditation review/ monitoring and also for the support of BBB services to the general public. The Ratings that Better Business Bureau provides is a key element to protect business
While the Better Business Bureau is set into place to set ethical guidelines and standards for companies to follow and customers to benefit from, this does not prevent unethical and dishonest actions from happening. Similar to the Red Cross Foundation, it appears that when organizations have many or several local chapters it makes it extremely difficult to monitor them through their everyday functions. I do not feel that the Better Business Bureau is effective in ensuring that companies behave ethically to protect the consumer, due to the fact that many organizations have memberships with the company. I do feel like this skews the ratings and leaves an excessive amount of room for error and unethical mismanagement.In my opinion, it seems rather
BBB has become monster verbal confrontations with their rating structure which was one of the essential good issues that the affiliation went up against. The open deliberation started when the prestigious diner "Ritz-Carlton Hotel" got rating "F" despite no complaints. This left the buyers confused that why such a prestigious associations or figures are gotten not exactly stellar scores. The reason for such examinations were that the a bit of the labourers of BBB assessed high assessments for the associations which paid costs to BBB people while assessed low for the business that did not paid any due charges to BBB. This declaration drove savants to ensure the BBB is working a "pay for play" plan. This "pay-for-play" is a distortion system in which the general population and the affiliations pay for their incredible treatment to the detriment of extra components. This was something isolating procedure where BBB respected awesome examinations "A" for accreditation for the people who paid costs while isolating other individuals who did not paid charges by rating "F". These issues happened due to heartbreaking conduct drove by the Los Angeles Branch of BBB. Distinctive business people reported the BBB was giving low assessments to their business regardless of now customer grievances or decided. The proprietors also reported that BBB was supporting pay-for-play where to get high examinations you have to pay.
They only have one complaint within the last three years and it was regarding an advertising and sales issue. Additionally, the BBB does not show any government actions involving their marketplace conduct, nor do they have any reports of them using any type of deceptive marketing tactics.
The Better Business Bureau is hoping to become the marketplace trustworthy leaders by providing fraud protection to consumers and firms (Foster, 2015). Several systems were put into place in order to accomplish this goal. There were two systems put into place as a resort. These two systems are accreditation and rating systems.
BBB provides free business reviews to more than 4 million business, BBB serves as an intermediary between consumers and businesses. In 2009 BBB moved to new sysem with rating from A+ to F, 16 factor have been posted on each business review. Initially there was a 17th factor worth 4 points for businesses that were Accredited and paid a fee to BBB. That process was changed in November 2010 in response to criticism in the media and from the Connecticut attorney general who accused BBB of using 'pay to play' tactic.
The Better Business Bureau provides with consumers and businesses with a dispute resolution process that is mediated by their organization. According to BBB.org (2016), there are several different procedures and rules set into place to assist with disputes which varies by region. Consumers are instructed to contact their local BBB for further directions that are offered in their area. During mediation, the BBB provides a professional mediator that comes to mutual solution for both parties. During the informal dispute resolution, a professional hearing officer makes a non-binding decision after listening to both sides before coming to a conclusion (“Dispute Resolution, 2016). During conditionally-binding arbitration, a professional arbitrator
The income perspective is people are considered poor if their income falls below a certain threshold or poverty line. The government uses the income guidelines to determine if people are eligible for services such as food stamps and TANF to name a few examples. Absolute poverty “is a system whereby, the government determines an objective income-level threshold or poverty line which is used as a measure of who is poor. Poverty can also be defined in terms of a relative poverty threshold. Relative poverty is influenced heavily by societal standards that determine a threshold of income that allows people to afford what is generally considered to be an adequate standard of living at a given
The value and effectiveness of the Better Business Bureau is based on trust, transparency and neutrality.The Better Business Bureau helps consumers and business by having a system in place on their website to avoid fraud and scam protection; along with other educational information for consumers (Ferrell, Fraedrich & Ferrell, 2015). They offer advertising review services and have a resource library that is available at anytime. The services that are offered by the Better Business Bureau are free and include dispute resolution between businesses and consumers, mediation and arbitration. Another convenience that is offer by the Better Business Bureau is reliability reports that include licensing information, customer complaint history, and contact
The Better Business Bureau is a non-profit organization that was started back in 1912. The reasoning behind this organization was to be considered a marketplace of trust. There are 115 local independent organizations spread out across the United States and spreads to Canada. The council of the Better Business Bureau is located in Arlington, Virginia. The Better Business Bureau gives free business reviews of a large an wide array of businesses. This makes the Better Business Bureau’s website be considered one of the top 1,000 most viewed websites in the country.
Dispute resolution represents an alternative to costly litigation, is an efficient, cost-effective way to resolve disputes between businesses and customers. BBBs at the local level helped consumers resolve nearly a million complaints in 2011. At the national level, Council of Better Business Bureau (CBBB) continue to maintain dispute resolution services for several major industries. CBBB also expanded its out-of-court dispute resolution system to a broader section of the marketplace. In 2011, CBBB managed several court-approved class action settlements per the terms of the settlement. CBBB also provided dispute resolution to national companies that have chosen to write BBB into their customer agreements. In conjunction with local BBBs,
Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings.