part 1 of exam 3

A comprehensive set of flashcards summarizing key terms and concepts related to Customer Relationship Management and advertising ethics, along with corporate responsibility and regulatory frameworks.

Customer Relationship Management (CRM)

The ability of an organization to effectively identify, acquire, foster, and retain loyal, profitable customers.

Consumer’s Magna Carta

A set of rights for consumers, including the right to safety, the right to choose, the right to be informed, and the right to be heard.

Anti Advertising

Arguments against advertising that suggest it is wasteful, raises product prices, is ineffective, and incurs high costs.

Ambiguity in Advertising

Use of unclear language in ads, such as 'helps you look younger' that lacks specific meaning.

Exaggerated Claims

False claims made by companies about their products that cannot be substantiated, such as Coca-Cola's Vitamin water claims.

Psychological Appeals

Marketing strategies that leverage consumer emotions, like targeting areas with recent break-ins for home security sales.

Comparative Advertising

The practice of directly comparing a company's product with a competitor's product, legal if claims can be proven.

Advertising to Children

The practice where children see a high volume of ads, estimated at 25,000 to 40,000 ads per year.

Age Compression

Marketing aimed at younger audiences with products meant for older age groups.

Tobacco Control Act (2009)

Legislation that restricts tobacco marketing to youth and requires health warnings on tobacco products.

Health and Environmental Claims in Advertising

Ads that include claims regarding health benefits or environmental impacts, needing verification.

Ad creep

The phenomenon of advertising infiltrating previously non-commercial spaces.

Deepfake Advertising

The use of digitally manipulated media to convincingly substitute one person's likeness with another's.

Implied Warranty

An unwritten promise that a product is fit for its intended use and free from defects.

Express Warranty

An explicit guarantee provided at the time of sale regarding the quality of the product.

Guarantee

A promise regarding product quality that may or may not be documented.

Magnuson-Moss Warranty Act (1975)

Establishes standards for warranties, including clarity and accessibility.

Federal Packaging and Labeling Act (1967)

Regulates product labeling to ensure it is informative and not misleading.

Labeling Practices

Putting less product in unchanged packaging but increasing prices.

Federal Trade Commission (FTC)

Agency tasked with preventing unfair competition and protecting consumers from deceptive practices.

Food & Drug Administration (FDA)

Government agency responsible for promoting public health by overseeing food and drug safety.

Consumer Product Safety Commission

Agency responsible for enforcing safety standards for consumer products and enforcing recalls.

Tort

A wrongful act or infringement of a right leading to legal liability.

Tort Law

Laws that entitle victims to claim compensation for damages caused by wrongful acts.

Doctrine of Strict Liability

Legal principle holding a person responsible for damages caused by their actions, regardless of intent.

Absolute Liability

Legal responsibility for a product hazard, even if unknown at the time of sale.

Market Share Liability

Legal principle where manufacturers share liability for injuries based on their market share.

Tort Reform

Changes to laws intended to reduce litigation or limit damages victims can recover.

Corporate Citizenship

A company's commitment to contributing positively to its community and society.

Volunteer Initiatives

Programs that pair employees with nonprofit organizations to provide support or expertise.

Corporate Volunteer Programs

Company programs encouraging employees to contribute their time and skills to community initiatives.

Philanthropy

The desire to promote the welfare of others through charitable donations.

Corporate Philanthropy

Business contributions aimed at supporting societal needs.

Strategic Philanthropy

Philanthropic efforts that provide benefits to both society and the business.

Milton Friedman’s view

The belief that corporations should focus solely on maximizing profits for shareholders.

Cause-Related Marketing

Linking a product to a charity such that a purchase leads to a donation.

Cause Branding

Partnerships between businesses and nonprofits to address social issues and boost brand image.

Transparency in Donations

The call for companies to disclose charitable donations, arguing they belong to shareholders.

Offshoring

The practice of relocating business processes to another country.

Reshoring

Returning business processes back to their original location.

Outsourcing

Hiring another company to perform services that were previously done in-house.

Business Closures

Legal protocols for notifying communities about plant closing impacts and offering relocation benefits.