Product-Related Ethical Issues Arise When Marketers

question 176

Multiple Choice

Product-related ethical issues arise when marketers

• A) provide consumers with inadequate information about how a product is priced.
• B) force channel intermediaries to behave in a specific manner.
• C) bribe salespeople to push one product over another.
• D) fail to disclose information to consumers about the risks associated with using a product.
• E) manufacture a product that is very similar to a competing product.

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Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest rate (the coupon) at regular intervals until the bond matures, when the principal amount is repaid.

Zero-Coupon Bond

A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, offering profit at maturity when the bond is redeemed for its full face value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates.

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, including all payments of principal and interest.