Marketers Face a New Set of Ethical and Legal Issues

question 127

Multiple Choice

Marketers face a new set of ethical and legal issues as social media becomes more essential to the success of the firm's marketing strategies. Moreover, as the social media landscape continues to evolve and expand, new ethical situations continue to appear. As a marketer, it is almost guaranteed that you or your organization will eventually make a mistake with your use of social media. Therefore, when you make that certain-to-occur mistake with social media, which of the following should you do?

• A) Immediately hire a public relations firm to do damage control.
• B) Limit all communications with external media sources.
• C) Hold a press conference to deny all allegations.
• D) Try to deflect the blame for the mistake to something or someone else.
• E) Be accountable and take action to resolve the issue.

Examine the elasticity of demand in relation to market structure.

Differentiate between the types of competition based on the number of firms and product differentiation.

Comprehend the significance of market power in pricing and output decisions.

Understand the concept of marginal revenue and how it is calculated.

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Definitions:

Unit Product Cost

The total expense incurred to produce, store, and sell one unit of a product, including direct materials, direct labor, and manufacturing overhead.

Variable Costing

An accounting method in which costs that vary directly with the level of production output are charged to product units.

Net Operating Income

The total profit of a company after operating expenses but before subtracting interest and taxes.

Direct Labor Cost

The cost associated with the work of employees who are directly involved in the manufacturing of products.