The American Red Cross Creates Advertisements to Encourage People to Donate

question 86

Multiple Choice

The American Red Cross creates advertisements to encourage people to donate blood. After viewing one, Amanda decided to donate a pint of blood. After she did, Amanda felt happy that she had performed a good deed. Did an exchange occur in a marketing sense?

• A)Yes, because the blood was donated to the Red Cross based on an advertisement, a marketing activity.
• B)Yes, because the donated blood was exchanged for a feeling of satisfaction.
• C)No, because the Red Cross is nonprofit organization.
• D)No, because no money changed hands.
• E)No, because the Red Cross, a service organization, did not provide Amanda with a product.

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Definitions:

Vertical Mergers

Mergers between companies that operate at different levels of the supply chain, such as a manufacturer merging with a supplier or distributor.

Horizontal Mergers

A business consolidation that occurs between firms operating in the same industry, often to increase market share and reduce competition.

Antitrust Laws

Legislation enacted to prevent anti-competitive practices, promote fair competition, and protect consumers from monopolies and cartels.

Vertical Merger

A merger between two companies that operate at different stages of the production process for a specific finished product.