Three Factors That Influence the Ethical Decision-Making Process in Marketing

question 167

Multiple Choice

Three factors that influence the ethical decision-making process in marketing include

• A) individual factors, organizational culture, and peer influence.
• B) opportunity, personal moral philosophies, and situational variables.
• C) individual factors, organizational factors, and opportunity.
• D) social forces, laws, and organizational factors.
• E) peer influences, personal moral philosophies, and opportunity.

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Definitions:

Herfindahl Indexes

A measure of market concentration used to determine the level of competition among firms within an industry, calculated by summing the squares of the market shares of each firm.

Concentration Ratio

A measure of the total market share that is controlled by a specified number of the largest firms within an industry, indicating the level of market competition.

Mutual Interdependence

A situation in which a change in price strategy (or in some other strategy) by one firm will affect the sales and profits of another firm (or other firms). Any firm that makes such a change can expect its rivals to react to the change.

Price Competition

A market strategy where companies reduce prices to attract consumers, often leading to a race to the bottom.