Part 2 book “Business essentials” has contents: Principles of marketing - building relationships with customers for competitive advantag, managing information for better business decisions, the financial system and issues in financial management.
Amy Sussman/Invision/AP Images chapter 11 marketing Processes and Consumer Behavior ParT PrinCiPlES oF marKETinG: BUildinG rElaTionShiPS WiTh CUSTomErS For ComPETiTiVE adVanTaGE as consumers, we are the forces that drive marketing But those same marketing campaigns push us in directions without us even knowing it 371 learning objectives 372 after reading this chapter, you should be able to: 11-1 Explain the concept of marketing and identify the five forces that constitute the external marketing environment 11-2 Explain the purpose of a marketing plan and identify its main components 11-3 Explain market segmentation and how it is used in target marketing 11-4 Discuss the purpose of marketing research and compare the four marketing research methods 11-5 Describe the consumer buying process and the key factors that influence that process 11-6 Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior 11-7 Discuss the marketing mix as it applies to small business Building a Brand With Social media Perhaps you are one of the more than million people who subscribe to Michelle Phan’s YouTube Channel Or maybe you know someone who has purchased products from her L’Oreal product line Even if you’ve never heard the name Michelle Phan, you’ll find that she has an interesting story that highlights the importance of believing in yourself, identifying a target market, and building a brand While taking a college class, Phan was given the opportunity to use a MacBook Pro Excited about the new technology, Phan started a blog about her life Well, not exactly The blog depicted the life that she dreamed of, one with money and a fantastic family, a life that was much more exciting and glamorous than her real-life experience Phan’s childhood was difficult She grew up in Florida in a community with few Asian children, she was subject to ridicule, and she felt out of place because of her Vietnamese heritage To make things worse, her father had gambling issues and the family moved from home to home Eventually, her father left and her mother remarried, only to have that relationship end By the age of 17, Phan was working as a hostess at a restaurant to supplement her mom’s meager pay as a nail technician, just to put a roof over their heads; they couldn’t even afford much furniture It was the chance of a lifetime when Phan’s extended family found the resources to send her to the Ringling College of Art and Design, where she received that MacBook Pro However, her blog was just the start Several subscribers to her blog asked her to post a tutorial about how she did her makeup, so Phan created a short video tutorial about creating a “natural” look She had expected that the audience for the video would be just the few people who read her blog, but she had 40,000 views in the first week So, she created more videos on how to create different looks, from dark and stormy to soft hues appropriate for church Phan established herself as an authority on beauty and she shared her expertise “You need interesting content that entertains or informs—preferably both You want people to look forward to your posts and come back for more People want to follow you They want to hear your words and see your vision.” Her lack of money to buy makeup didn’t limit her ability to create new videos—she scoured the bargain bins at stores, picking up many items for less than a dollar Eventually, she was able to generate advertising revenue from her YouTube channel, allowing her to quit her job as a waitress Within four years, Phan had become a brand The name Michelle Phan conveyed an image and position in the market Google offered her $1 million to create 20 hours of content, and she began creating video content for high-end cosmetics line Lancome A year later, L’Oreal offered Phan her Auremar/Fotolia what’s in it for me? Businesses must adapt to their environment in many different ways One common approach is to apply marketing basics in an innovative way to appeal to the forces of the external marketing environment This chapter discusses these basics along with the marketing plan and components of the marketing mix, as well as target marketing and market segmentation It also explores key factors that influence consumer and organizational buying processes By grasping the marketing methods and ideas in this chapter, you will not only be better prepared as a marketing professional but you also will become a more informed consumer 373 374 PART PRINCIPLES OF MARKETING own makeup line At that moment, Phan realized she had made it—she called her mother and told her she’d just done her last pedicure And she meant it Phan has expanded her presence in the market by creating Ipsy, a beauty sample service and community Subscribers pay $10 a month to sample products selected especially for them and are able to view video content to optimize their experience Phan is also a co-founder of Shift Music Group, a music publishing company, and is creating a premium lifestyle network called ICON, partnering with Endemol USA While not yet 30, Phan has established herself as a powerhouse in the beauty and lifestyle industry She carefully monitors trends in her environment and quickly spots new opportunities At the same time, she’s kept a keen eye on her target market and understands the consumer buying process While many might perceive YouTube as a difficult path to a successful career, Phan believes just the opposite She explains, “You’re in control of how people perceive you and see you I can’t say the same for traditional media because you have other people who are editing you—producers and other people who have the final say Your YouTube channel is your own show I think it’s a wonderful platform for anyone who wants to have stronger creative control over their content, their message, their vision, and their branding.”1 (After studying the content in this chapter, you should be able to answer a set of discussion questions found at the end of the chapter.) OBJECTIVE 11-1 Explain the concept of marketing and identify the five forces that constitute the external marketing environment Marketing activities, a set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large What is marketing? As consumers, we are influenced by the marketing activities of people like Michelle Phan and companies like L’Oreal and Google that want us to buy their products rather than those of their competitors Being consumers makes us the essential ingredients in the marketing process Every day, we express needs for such essentials as food, clothing, and shelter and wants for such nonessentials as entertainment and leisure activities Our needs and wants are major forces that drive marketing What comes to mind when you think of marketing? Most of us think of marketing as advertisements for detergents and soft drinks Marketing, however, encompasses a much wider range of activities The American Marketing Association defines marketing as “activities, a set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”2 To see this definition in action, we’ll continue this chapter by looking at some marketing basics, including the ways marketers build relationships with customers We’ll then examine forces that constitute the external marketing environment, followed by marketing strategy, the marketing plan, and the components of the marketing mix We’ll then discuss market segmentation and how it is used in target marketing Next, we’ll examine marketing research, followed by a look at key factors that influence the buying processes of consumers and industrial buyers Finally, we’ll consider the marketing mix for small business and then go beyond domestic borders to explore the international marketing mix Delivering Value What attracts buyers to one product instead of another? Although our desires for the many available goods and services may be unbounded, limited financial resources force most of us to be selective Accordingly, customers usually try to buy products that offer the best value when it comes to meeting their needs and wants Value relative comparison of a product’s benefits versus its costs Value and Benefits The value of a product compares its benefits with its costs Benefits include not only the functions of the product but also the emotional satisfaction associated with owning, experiencing, or possessing it But every product has costs, including sales price, the expenditure of the buyer’s time, and even the emotional costs of making a purchase decision A satisfied customer perceives the Marketing Processes and Consumer Behavior ChAPTeR 11 375 benefits derived from the purchase to be greater than its costs Thus, the simple but important ratio for value is derived as follows: Value = Benefits Costs The marketing strategies of leading firms focus on increasing value for customers Marketing resources are deployed to add benefits and decrease costs of products to provide greater value To satisfy customers, a company may the following: Develop an entirely new product that performs better (provides greater performance benefits) than existing products Keep a store open longer hours during a busy season (adding the benefit of greater shopping convenience) Offer price reductions (the benefit of lower costs) Offer information that explains how a product can be used in new ways (the benefit of new uses at no added cost) Value and Utility To understand how marketing creates value for customers, we need to know the kind of benefits that buyers get from a firm’s goods or services As we discussed in Chapter 7, those benefits provide customers with utility, the ability of a product to satisfy a human want or need Think about the competitive marketing efforts for Microsoft’s Xbox series and those for Sony’s competing PlayStation game consoles In both companies, marketing strives to provide four kinds of utility in the following ways: Form utility Marketing has a voice in designing products with features that customers want Microsoft’s Xbox One features kineet technology (voice- and motion-detecting software) and can record a video of your game Sony’s newest PlayStation (PS 4) touts a controller with a six-axis sensor Time utility Marketing creates a time utility by providing products when customers will want them Both Sony and Microsoft create Internet buzzes and rumors among gamers by hinting at upcoming release dates without mentioning specifics Place utility Marketing creates a place utility by making products easily accessible—by making products available where customers will want them Xbox One and PS are available online at Amazon.com and at many brick-andmortar retailers such as Best Buy and Target Possession utility Marketing creates a possession utility by transferring product ownership to customers by setting selling prices, setting terms for customer credit payments, if needed, and providing ownership documents Hints about prices from both companies have fueled rumors: Xbox One sells for around $350, while the PS runs about $400 As you can imagine, marketing responsibilities at Microsoft and Sony are extremely challenging in such a competitive arena, and the stakes are high Because they determine product features, and the timing, place, and terms of sale that provide utility and add value for customers, marketers must understand customers’ wants and needs In today’s fast-moving industries, those wants and needs must be determined quickly Marketing methods for creating utility are described in this and the following two chapters Goods, Services, and Ideas The marketing of tangible goods is obvious in everyday life It applies to two types of customers: those who buy consumer goods and those who buy industrial goods In a department store, an employee may ask if you’d like to try a new cologne A pharmaceutical company proclaims the virtues of its new cold medicine Your local auto dealer offers an economy car at an economy price These products are all utility ability of a product to satisfy a human want or need Form utility providing products with features that customers want Time utility providing products when customers will want them Place utility providing products where customers will want them Possession utility transferring product ownership to customers by setting selling prices, setting terms for customer credit payments, and providing ownership documents 376 PART PRINCIPLES OF MARKETING Consumer Goods physical products purchased by consumers for personal use Industrial Goods physical products purchased by companies to produce other products Services products having nonphysical features, such as information, expertise, or an activity that can be purchased consumer goods, tangible goods that you, the consumer, may buy for personal use Firms that sell goods to consumers for personal consumption are engaged in consumer marketing, also known as business-to-consumer (B2C) marketing Marketing also applies to industrial goods, physical items used by companies to produce other products Surgical instruments and bulldozers are industrial goods, as are components and raw materials such as integrated circuits, steel, coffee beans, and plastic Firms that sell goods to other companies are engaged in industrial marketing, also known as business-to-business (B2B) marketing But marketing techniques are also applied to services, products with intangible (nonphysical) features, such as professional advice, timely information for decisions, or arrangements for a vacation Service marketing, the application of marketing for services, continues to be a major growth area in the United States Insurance companies, airlines, public accountants, and health clinics all engage in service marketing, both to individuals (consumer markets) and to other companies (industrial markets) Thus, the terms consumer marketing and industrial marketing include services as well as goods Finally, marketers also promote ideas, such as “inspirational values” as seen in “Encouragement, Pass It On,” on YouTube and in the popular television commercials Ads in theaters warn us against copyright infringement and piracy Other marketing campaigns may stress the advantages of avoiding fast foods, texting while driving, or quitting smoking, or they may promote a political party or candidate Relationship Marketing and Customer Relationship Management relationship Marketing marketing strategy that emphasizes building lasting relationships with customers and suppliers Customer relationship Management (CrM) organized methods that a firm uses to build better information connections with clients, so that stronger company-client relationships are developed Data Warehousing the collection, storage, and retrieval of data in electronic files Data Mining the application of electronic technologies for searching, sifting, and reorganizing pools of data to uncover useful information Although marketing often focuses on single transactions for products, services, or ideas, marketers also take a longer-term perspective Thus, relationship marketing is a type of marketing that emphasizes building lasting relationships with customers and suppliers Stronger relationships, including stronger economic and social ties, can result in greater long-term satisfaction, customer loyalty, and customer retention.3 Michelle Phan has used relationship marketing very successfully Similarly, Starbucks’s Card Rewards attracts return customers with free coffee refills and other extras Commercial banks also offer economic incentives to encourage longer-lasting relationships Longtime customers who purchase a certain number of the bank’s products (for example, checking accounts, savings accounts, and loans) accumulate credits toward free or reduced-price products or services, such as free investment advice Like many other marketing areas, the ways that marketers go about building relationships with customers have changed dramatically Customer relationship management (CRM) is an organized method that an enterprise uses to build better information connections with clients, so that managers can develop stronger enterprise–client relationships The power of Internet communications coupled with the ability to gather and assemble information on customer preferences allows marketers to better predict what clients will want and buy Viking River Cruises communicates with booked vacationers months in advance of departures, including e-mails with menus and recipes from countries that vacationers will be visiting Viking also encourages social networking among booked passengers to establish prevoyage friendships, which can lead to faster face-to-face acquaintanceships once they board the riverboat The compiling and storage of customers’ data, known as data warehousing, provides the raw materials from which marketers can extract information that enables them to find new clients and identify their best customers Marketers can then inform these priority clients about upcoming new products and postpurchase service reminders Data mining automates the massive analysis of data by using computers to sift, sort, and search for previously undiscovered clues about what customers look at and react to and how they might be influenced Marketers use these tools to get a clearer picture of how knowing a client’s preferences can satisfy those particular needs, thereby building closer, stronger relationships with customers.4 Marketing Processes and Consumer Behavior ChAPTeR 11 377 Toronto-based Fairmont Resort Hotels, for example, first used data mining to rebuild its customer-relations package by finding out what kinds of vacations their customers prefer and then placed ads where they were more likely to reach those customers When data mining revealed the worldwide destinations of Fairmont customers, it helped determine Fairmont’s decision to buy their customers’ numberone preference, the Savoy in London.5 Fairmont’s enhanced CRM has attracted new guests and strengthened relationships and loyalty among existing clients through Web-based promotions and incentives Using profiles of guest information, Fairmont identifies target traveler segments and supplies travelers with personalized price discounts and special hotel services.6 We’ll discuss data warehousing and data mining in more detail in Chapter 14 The Marketing Environment Marketing plans and strategies are not determined unilaterally by any business—rather, they are strongly influenced by powerful outside forces As you see in Figure 11.1, every marketing program must recognize the factors in a company’s external environment, which is everything outside an organization’s boundaries that might affect it In this section, we’ll discuss how these external forces affect the marketing environment in particular Political-Legal Environment The political-legal environment, both global Political-Legal Environment the and domestic, has profound effects on marketing For example, environmental legislation has determined the destinies of entire industries The political push for alternative energy sources is creating new markets and products for emerging companies such as India’s Suzlon Energy Limited (large wind turbines), wind-powered electric generators by Germany’s Nordex AG, and wind farms and power plants by Spain’s Gamesa Corporation Marketing managers try to maintain favorable political and legal environments in several ways To gain public support for products and activities, marketers use ad campaigns to raise public awareness of important issues Companies contribute to political candidates and frequently support the activities of political action committees (PACs) maintained by their respective industries relationship between business and government, usually in the form of government regulation of business Sociocultural Environment The sociocultural environment also impacts Sociocultural Environment the customs, mores, values, and demographic characteristics of the society in which an organization functions pe m iron Env e v t it i ent Politica l-Leg al E nv iro nm en t Co m marketing Changing social values force companies to develop and promote new products, such as poultry and meat without antibiotics and growth hormones, for both individual consumers and industrial customers Just a few years ago, organic The Firm and Its Marketing Plan Sociocultural Env iro ic E om n co t en E FIGurE 11.1 The External Marketing Environment n Tech nological Environment m nment nviro • plans • strategies • decisions 378 PART PRINCIPLES OF MARKETING foods were available only in specialty food stores such as Whole Foods Today, in response to a growing demand for healthy foods, Target’s Archer Farms product line brings affordable organic food to a much larger audience Grocers like Kroger and HEB also have set aside large areas in their stores where consumers can find organic and/or natural products In addition, new industrial products reflect changing social values: A growing number of wellness programs are available to companies for improving employees’ health Quest Diagnostics, for example, a B2B company, supplies a “Blueprint for Wellness” service that assesses employee healthcare risks in client companies and recommends programs for reducing those risks This and other trends reflect the values, beliefs, and ideas that shape society In similar fashion, businesses strive to distance themselves from people and products that are potentially offensive For instance, when Donald Trump announced his bid for the presidency in 2015, he made several controversial remarks about illegal immigrants from Mexico In quick response, NBC dropped plans to televise the Miss Universe pageant owned by Trump and Macy’s discontinued its line of Trump-endorsed menswear Technological Environment all the Technological Environment The technological environment creates new ways by which firms create value for their constituents goods and services New products make existing products obsolete, and many products change our values and lifestyles In turn, lifestyle changes often stimulate new products not directly related to the new technologies themselves Mobile devices, the availability of a vast array of apps, and social media, for example, facilitate business communication just as prepackaged meals provide convenience for busy household cooks Both kinds of products also free up time for recreation and leisure Economic Environment Because economic conditions determine spendconditions that exist in the economic system in which a company operates Competitive Environment the competitive system in which businesses compete ing patterns by consumers, businesses, and governments, the economic environment influences marketing plans for product offerings, pricing, and promotional strategies Marketers are concerned with such economic variables as inflation, interest rates, and recession Thus, they monitor the general business cycle to anticipate trends in consumer and business spending Competitive Environment In a competitive environment, marketers must convince buyers that they should purchase one company’s products rather than another’s Because both consumers and commercial buyers have limited resources, every John Locher/AP Images Economic Environment relevant Marketing strategies are strongly influenced by powerful outside forces For example, new technologies create new products, such as the cell phone “gas station” shown here These recharging stations enable customers to recharge their mobile devices just as they would refuel their cars The screens at the stations also provide marketers with a new way to display ads to waiting customers Marketing Processes and Consumer Behavior ChAPTeR 11 379 managing in turbulent times Today’s marketers are struggling with pressures from several outside forces: Changes in the political–legal, sociocultural, technological, and economic environments are changing the competitive landscape Industries ranging from automobiles to energy to housing are grappling with a common environmental theme: going green For example, public sentiment turned decidedly toward alternatives to gas-guzzling cars Home buyers also want energy-efficient heating and cooling, such as geothermal heat, in their homes Environmentalists are pushing for alternative energy sources, notably wind and solar power, to replace fossil fuels Local utilities are offering incentives for construction using environmentally sensitive building designs to conserve energy Purchases of tiny houses are growing Solar-powered wells are replacing mechanical windmills on farms In Washington, DC, the Barack Obama administration and Congress continue their struggle to create more jobs and reduce the national debt while also meeting commitments for a cleaner environment using energy-saving technologies These outside pressures present challenges for all areas of marketing—from identifying the new target markets to designing new products for those markets and, in some cases, finding technologies to make those products Success depends on coordinating the various marketing activities and making them compatible with one another Marketers need to present a convincing rationale for a product’s pricing and demonstrate how the product provides the benefits sought by the target markets Distribution methods, how companies deliver products and after-services to customers, have to match up with promises in the promotional message so that, together, the marketing activities provide a persuasive package that delivers the desired value and benefits Further, this integrated marketing strategy must be coordinated with financial management and production operations to provide timely customer satisfaction The marketing blueprint for Toyota’s Prius automobile used an integrated marketing mix for meeting the challenge of going green While developing the fuel-efficient hybrid technology, Toyota identified niche target markets of users in some 40 countries and determined a price range compatible with the company’s performance reliability and quality reputation Promotion in the U.S market started two years before the car was released so customers could view and purchase a Prius In one prelaunch promotion, Toyota teamed up with the Sierra Club and lent the Prius to environmentally sensitive Hollywood superstars to provide exposure and allow car testing in the target market The main ad campaign to general audiences emphasized that consumers can still have speed and comfort David Koscheck/Shutterstock Feeling the Pressure for “Green” along with environmental friendliness And preorders were delivered on time to buyers As a result, the Prius became the most successful hybrid automobile in the United States and the rest of the world High fuel prices, as well as concern for the environment, were a major factor in the popularity of the Prius and other hybrid vehicles However, falling fuel prices in 2014 affected the types of vehicles that consumers purchased Sales of SUVs and trucks rose 10 percent in 2014 and sales of hybrid and electric vehicles slowed With lower fuel prices, it could take five years or more to recover the additional cost associated with a hybrid from the fuel savings However, as dealers find that they have excess inventory in hybrid cars, they have begun to cut prices, making the economic argument more compelling It’s important to note that there’s more to the story than fuel savings Consumers are increasingly committed to lower emissions and a smaller carbon footprint Interestingly, many hybrid owners consider their choice of a vehicle as an extension of their social identity By September 2014, Prius dominated the market—accounting for more than half of all sales and seven times higher sales than the second-place vehicle, the Honda Civic One explanation for this phenomenon relates directly to the buyer’s social identity Unlike the Civic, which is also available in a standard fuel option, the Prius is a hybrid-only model Its distinctive appearance brands the owner as environmentally conscious, reinforcing the self-image of the owner.7 682 INDEX Management by objectives (MBO), 291, 293 Management information system (MIS), 488 Manager, 171 areas of, 179–180 financial manager, 179–180 human resource manager, 179 information manager, 179 marketing manager, 179 operations manager, 179 public relations manager, 180 research and development manager, 180 competence, 120 education of, 175–176 experience of, 176–177 incompetence, 119 information systems for, 488 levels of first-line manager, 179 middle manager, 178 top manager, 177–178 roles of, 180–182 decisional, 181–182 informational, 181 interpersonal, 180–181 Managerial (management) accounting, 507 Manhattan Project, 93 Manufacturing operations compared to service operations, 237–238 small businesses in, 109, 110 Market, 46 Marketable securities, 516 Market capitalization (market cap), 596–597 Market economy competition in, 50–52 defined, 45 demand and supply in, 47–50 private enterprise in, 50–52 Market index, 585–588 Marketing, 370–404 See also Marketing mix consumer behavior and, 390–392 CRM in, 376–377 defined, 374 environment, 377–380 competitive, 378, 380 economic, 378 political-legal, 377 sociocultural, 377–378 technological, 378 goods in, 375–376 ideas in, 376 manager, 179, 382 mix (See Marketing mix) objectives, 381 plan (See Marketing plan) relationship, 376–377 research (See Marketing research) services in, 376 social media and, 393–394 strategy (See Marketing strategy) value in, 374–375 Marketing mix, 382–384 defined, 382 international, 394–396 place (distribution) in, 382–383 pricing in, 382 product in, 382 promotion in, 383–384 small business, 396–397 place (distribution) in, 396, 397 pricing in, 396 product in, 396 promotion in, 397 Marketing plan, 380–384 components of, overview of, 381 defined, 381 developing, concept of, 380–381 objectives in, 381 strategy in (See Marketing strategy) Marketing research, 386–390 defined, 386–390 marketing process and, overview of, 386–387 methods of, 388, 389–390 steps in performing, 387–388 Marketing strategy, 381–384 See also Market segmentation distribution through supply chains as, 451 integrated, 384 marketing manager in, 382 marketing mix in, 382–384 product positioning in, 385 target market in, 384 Market price (equilibrium price), 48 Market segmentation, 384–386 behavioral, 386 defined, 384 demographic, 385 geo-demographic, 386 geographic, 385 identifying segments, 385 psychographic, 386 Market share (or market penetration), 422 Market value, 577 Markup, 423 Martha Stewart Living Omnimedia, 217, 218 Maslow, Abraham, 186 Mass customization, 475 Master limited partnership, 122 Master operations schedule, 247–248 Materials management, 250–252 activities for physical goods, 250–251 inventory, 251–252 JIT production, 251 lean production system, 251 quality control, 252 Matrix structure, 217, 218 Maturity, in PLC, 419 Maturity date (due date), 593 INDEX McClelland, David, 287 McGregor, Douglas, 285–286 Media in advertising, 453, 454, 455 Media mix, 454 Mediation, 360, 646 Meetings as time waster, 183 Mentors, 317 Merchandise inventory, 516 Merchant wholesaler, 443 Merger, 127 Mergers and acquisitions (M&As), 127–128 Merit salary system, 347 Methods planning, 246–247 Mexico, 142, 143 Micro-lending, 116, 119 Middle manager, 177, 178 Ministry of Manpower (MOM), 273 Minorities as small business owners, 118 Minority enterprise small business investment companies (MESBICs), 116 Missionary selling, 456 Mission statement, 185 Mixed market economy, 46–47 Monetary policy, 58, 555 Money, 542–569 balance of payments and, 148–149 characteristics of, 542–543 creation of, 550–551 credit cards, 545 debit cards, 545 defined, 542 the Fed, 552–556 functions of, 543–544 international banking and finance, 560–562 M-1, 544–545 M-2, 545 monetary policies and, 58 regulation of, 551–552 supply growth, 546 U.S financial system, 545–550, 556–560 Money market mutual fund, 545 Monitor, manager as, 181 Monopolistic competition, 51 Monopoly, 52 Morale, 282 Morals, ethics and, 71 Mortgage-backed security (MBS), 594 Mortgage loan, 627–628 Motivation, 284–296 concepts and theories, 284–291 classical theory of motivation, 284 contemporary motivation theory, 289–291 early behavioral theory, 284–288 enhancing, strategies and techniques for, 291–296 job enrichment programs, 294 job redesign programs, 294 management by objectives, 291, 293 modified work schedules, 294–296 683 participative management and empowerment, 293 positive reinforcement, 291, 292 punishment, 291, 292 social learning, 291 team structures, 293–294 factors, in two-factor theory, 286–287 self, 279 Multinational firm, 154 Multinational (or transnational) corporation, 125 Municipal bonds, 592 Mutual funds, 578, 579 Mutual savings bank, 547 Myers-Briggs Type Indicator (MBTI), 278–279 N NASDAQ Composite Index, 587 National Association of Securities Dealers Automated Quotation (NASDAQ) system, 583 National brand, 421 National competitive advantage, 151 National Credit Union Administration (NCUA), 554 National debt, 56 National Education Association (NEA), 357 National Labor Relations Act (Wagner Act), 343, 640–641 National Labor Relations Board (NLRB), 343, 640–641 Natural monopoly, 52 Need for achievement, 287–288 Need for affiliation, 288 Need for power, 288 Negative balance of trade, 146 Negligence, 618 Negotiator, manager’s role as, 182 Net income (net profit, net earnings), 518 Networks See Computer networks Net worth, 514, 630 New product development, 413–415 New ventures See Small business start-ups New York Stock Exchange (NYSE), 582–583 Niche, 112–113 No-load fund, 578 Nominal GDP, 53 Noncertified public accountants, 499–509 Nondeposit institutions, 548 Nondirect distribution, 442 Nonprogrammed decision, 322 Nonstore retailing, 446 Norris-LaGuardia Act, 640 North America, 142 North American Free Trade Agreement (NAFTA), 144 O Objections in personal selling process, 456 Objectives in business plan, 114 Observation, 388 Obstructionist stance, 86 684 INDEX Occupational Safety and Health Act (OSHA) of 1970, 343 Occupational Safety and Health Administration (OSHA), 616 Odd-even pricing, 427 Office manager, 177, 179 Officers, 127 Offshoring, 152 Oligopoly, 51–52 Online financing sources, 116 Online investing, 584 Online retailing, 446–449 cybermalls in, 449 defined, 447 e-catalogs in, 447, 448 electronic storefronts in, 448 leading retailers in, 448 video retailing in, 449 On-the-job training, 350 Open Market Committee, 554 Open-market operations, 556 Operating expenses, 518 Operating income, 518 Operational plan, 189 Operations See also Production business strategy as driver of, 240–241 capability, 240–241 control, 250–252 defined, 179, 234 goods, 234, 235–236 management, 237 manager, 177, 178, 179 planning, 242–247 capacity, 242, 243 layout, 244–245 location, 243–244 methods, 246–247 quality, 245–246 process, 238–239 quality in (See Quality) scheduling, 247–250 computer-based, 249 detailed schedule, 248 master operations schedule, 247–248 project, 249–250 staff schedule, 248–249 service, 234, 235–236 value, 236–239 adding, through supply chains, 257–259 in operations process, 238–239 in resource transformation process, 237 in service and manufacturing operations, 237–238 utility provided by, 236 Order processing, 456 Organization, ethical behavior toward, 72 Organizational analysis, 188–189 Organizational citizenship, 275 Organizational commitment, 282 Organizational dimensions of social responsibility formal, 91 ethical compliance, 91 legal compliance, 91 philanthropic giving, 91 informal, 91–92 organization leadership and culture, 91–92 whistle-blowing, 92 Organizational stakeholders, 76–78 See also Stakeholder model of responsibility Organizational structure, 202–227 basic forms of, 215–220 divisional structure, 216–217 functional structure, 216 international organizational structures, 217–219 learning organization, 219, 220 matrix structure, 217, 218 team organization, 219 virtual organization, 219, 220 building blocks of, 207–211 departmentalization, 208, 210–211 job specialization, 207–208 decision-making in (See Decision-making hierarchy) defined, 204 determinants of, 205–206, 207 informal, 220–222 for innovation, 206 organization chart in, 205 Organization chart, 205 Organization of Petroleum Exporting Countries (OPEC), 160 Organized labor, 357–360 collective bargaining, 358–360 unionism, 357–358 Organizing, 173 Outcry market, 582 Outsourcing, 152, 258, 259 Overseas investors, 116 Overseer, 317 Owners’ equity in accounting equation, 513–514 on balance sheet, 516 P Pacific Asia, 142, 143 Packaging, 422 Paid-in capital, 516 Paperwork as time waster, 183 Participative leader behavior, 314 Participative management and empowerment, 293 Partnerships, 121–122 Passive goal behavior, 157, 158 Patent, 618 Path-goal theory, 313 Patriot Act, 344, 557 Pay-for-knowledge plan, 347 Pay for performance (or variable pay), 347 Penetration pricing, 426 INDEX Pension fund, 523, 548 Perfect competition, 50–51 Performance, 246 Performance appraisal, 351–354 compassion in, 353 errors in, 351–352 evaluation form, 351, 352 feedback in, 352, 353–354 methods of, 351 Performance behaviors, 274–275 Permission marketing, 459 Personal contacts, 90 Personal finances, 621–631 conserving money by controlling it, 625–628 credit cards, 626 home ownership, 627–628 interest rates and payments, 626–627 financial plan, 621–623 financial goals, developing, 623 personal net worth, assessing, 622 step-by-step approach to, 621 tax avoidance, 628–631 time value of money, 624–625 as financial planning tool, 625 golden years, planning for, 624–625 Personal influences, 390 Personality, 277–280 authoritarianism, 280 “big five” personality traits, 277–278 emotional intelligence, 279 locus of control, 279 Machiavellianism, 280 Myers-Briggs Type Indicator, 278–279 personality, 277–280 risk propensity, 280 self-efficacy, 279 self-esteem, 280 Personal net worth, 622 Personal selling, 383, 454–459 defined, 383, 454 direct (or interactive) marketing in, 459 process, 456, 457 publicity in, 459 public relations in, 459 sales promotions in, 458–459 situations, 455 tasks, 456 Person-job fit, 284 PERT chart, 249 Pharming, 489 Philanthropic giving, 91 Phishing, 489 Physical distribution, 449–451 defined, 449 through supply chains, 451 transportation operations, 450–451 warehousing operations, 449–450 Physical exams in employee selection, 346 685 Physical goods, activities for, 250–251 Physical resources, 43–44 Picketing, 359, 646 PITI costs, 628 Place, 382–383 See also Distribution mix Place utility, 236, 375 Planned economy, 45–46 Planning, 173 Plant manager, 177, 178, 179 Point-of-sale (POS) displays and terminals, 459, 559 Political action committees (PACs), 90 Political forces in decision making, 326 Political issues in international trade, 159–160 Political-legal environment, 41–42, 377 Polygraph tests in employee selection, 346 Ponzi scheme, 72, 580 Portfolio, 590 Positioning, 452 Positive balance of trade, 146 Positive reinforcement, 291, 292 Possession utility, 375 Power, 309–310 coercive, 310 defined, 309 expert, 310 legitimate, 309 orientation, 157–158 referent, 310 respect, 157, 158 reward, 310 tolerance, 157, 158 Premium, 458 Presentation in personal selling process, 456 President, 127, 177 Price appreciation, 589 Price gouging, 83 Price lining, 426, 427 Price-setting tools, 423–424 breakeven analysis, 424 cost-oriented pricing, 423 Price skimming, 425–426 PricewaterhouseCoopers (PwC), 508 Pricing, 422–428 defined, 382 international, 395, 428 objectives, 422–423 e-business, 423 market share, 422 profit-maximizing, 422 price-setting tools, 423–424 small business, 396 strategies, 425–426 bundling, 426 for e-business, 426 for pricing existing products, 425 for pricing new products, 425–426 tactics, 426, 427 unfair, 83 686 INDEX Primary agents of interest, 72 Primary data, 388 Primary securities market, 581 Prime rate, 547 Principal, 619 The Principles of Scientific Management (Taylor), 284 Print server, 481 Private accountant, 509–510 Private brand (private label), 422 Private cloud services, 481 Private enterprise, 50–52 Private warehouse, 449 Privatization, 46–47 Proactive stance, 87 Process departmentalization, 210 Process layout (custom-product layout), 244 Product, 410–422 adaptation, 419 champion, 222 consumer, 411–412 defined, 382 departmentalization, 210, 211 development of new products, 413–415 seven-step process of, 416–417 successful, 415–416 differentiation, 382 extension, 419 features, 410 ideas, 416 international, 394 layout (same-steps layout), 244–245 liability, 618 life cycle (See Product life cycle (PLC)) line, 413 mix, 413 organizational, 412–413 placement, 421 positioning, 385 seven-step development process, 416–417 small business, 396 testing and test marketing, 416 as value package, 410 Production See also Operations factors of, 43–44 capital, 43 entrepreneurs, 43 information resources, 44 labor, 43 physical resources, 43–44 items, 412 supervisors, 179 Productivity, 54–56, 254 balance of trade, 55–56 defined, 54, 254 national debt, 56 quality-productivity connection, 253–254 Product life cycle (PLC), 418–422 branding in, 419–422 defined, 418 extending, 419 packaging in, 422 stages in, 418–419 decline, 418, 419 growth, 418 introduction, 418 maturity, 418, 419 Professional corporation, 125 Profitability ratio, 521, 522 Profit center, 208 Profit-maximizing objectives, 422 Profits, 38–39 consumer choice and, 39 defined, 38–39 demand and, 39 enterprise and, 39 opportunity and, 39 in private enterprise, 50 Profit-sharing plan, 347 Programmed decision, 321–322 Progressive Wage Model, 273 Project manager, 177, 179 Project scheduling, 249–250 Promotion, 451–454 by advertising, 383, 453–454 defined, 383, 451 importance of, 451–454 international, 395 objectives in, 452 by personal selling, 383, 454–459 by public relations, 383–384 sales, 383 small business, 397 strategies in, 452 Promotional mix, 452–453 consumer buying process and, 452–453 defined, 452 Proper form in contract law, 617 Property, 618 insurance, 613 laws, 618–619 rights in private enterprise, 50 Prospecting, 456 Prospectus, 599 Protectionism, 159–160 Protectionist tariffs, 159 Prototype development, 416 Psychographic segmentation, 386 Psychographic variables, 386 Psychological contract, 282–284 Psychological influences, 390 Psychological pricing, 427 Public cloud services, 480–481 Publicity, 459 Publicly held (or public) corporation, 124, 125 INDEX Public relations, 383–384, 459 Public relations manager, 180 Public warehouse, 449 Pull strategy, 452 Punishment, 291, 292 Punitive damages, 617 Purchasing, 251 Purchasing power parity, 53, 54 Pure risk, 611 Push strategy, 452 Q Qualifying, 456 Quality control, 252 defined, 245–246 improvement team, 255–256 managing (See Total quality management (TQM)) ownership, 255 planning, 245–246 poor, cost of, 254–255 quality-productivity connection, 253–254 taking responsibility for, 255 Quid pro quo harassment, 344 Quota, 159 R Racial harassment, 277 Ranking method of appraisal, 351 Rapid prototyping, 487 Rating method of appraisal, 351, 352 Rational motives, 391 Real GDP, 53, 54 Realistic job preview (RJP), 345 Real-time ad tracking, 453–454 Recency error, 351–352 Recession, 58 Recruiting, 345 Recycling, 81–82 Reference checks in employee selection, 346 Referent power, 310 Regional marketing manager, 179 Regression to the mean, 292 Regulation defined, 89 of money, 551–552 trends in, 616 Regulatory (or administrative) law, 615 Reintroduction, 419 Related diversification, 186 Related industries, 151 Relationship marketing, 376–377 Reorganization, 620 Repayment plan, 620 Replacement chart, 340 Reporting standards and practices, 519–521 full disclosures, 520–521 revenue recognition, 520 Research and development expenses, 518 manager, 180 small businesses in, 111 Reseller market, 392 Reserve banks, 553–554 Reserve requirement, 555 Resource allocator, manager’s role as, 181–182 Responsibility in delegation process, 214 Retailing, 440–441 brick-and-mortar retail outlets, 446 nonstore retailing, 446 online retailing, 446–449 small businesses in, 109 Retail selling, 455 Retained earnings, 516, 598 Retirement plans, 347, 348 Revenue recognition, 520, 527 Revenues, 517 Revenue tariffs, 159 Reward power, 310 Rights, as ethical norm, 73, 74 Right-to-work laws, 641 Risk avoidance, 611 control, 611 defined, 611 IRA, 630 management, 611–613 coping with risk, 611–612 defined, 611 insurance as, 612–613 program, 612 propensity, 280, 326 ratings, 593–594 retention, 611 transfer, 611 Risk-return (risk-reward) relationship, 588–590 asset allocation, 590 defined, 588 diversification, 590 dividends, 589 fantasy stock markets, 589 portfolios, 590 price appreciation, 589 total return, 589 Rivalries, 151 Roth IRA, 630 Router, 491 Rule of 72, 576 Russell 2000 Index, 587 Ryanair, low-cost airline, 233–234 687 688 INDEX S Sabotage, 276 Safety, legal context of, 343 Salary, 346 Sales agent, 442 Sales forecasting in business plan, 114 Sales promotions, 383, 458–459 Sarbanes-Oxley Act of (Sarbox or SOX), 512 Savings and loan association (S&L), 547 Savings institutions, 547 Scientific management, 284 S corporation, 124–125 Screening, 416 Secondary data, 388 Secondary securities market Secured loan (asset-backed loan), 591 Securities, 581–588 defined, 581 ECNs, 583–584 individual investor trading, 584 primary securities market, 581 SEC and, 581, 599–600 stock exchanges, 581–583 stock indexes for tracking, 585–588 Securities and Exchange Commission (SEC), 507, 581, 599–600 Securities investment dealer (broker), 548 Securities market, 599–600 defined, 581 insider trading, regulations against, 599–600 SEC, 581, 599–600 Security policy, 491 Selective distribution, 443 Self-awareness, 279 Self-efficacy, 279 Self-esteem, 280 Sellers, business-to-business, 444, 445 Selling expenses, 518 Sensing versus intuition, in MBTI, 278 Servers, in client-server network, 480 Service Corps of Retired Executives (SCORE), 116 Service factories, 237 Service ideas, 417 Service operations, 234, 235–236 defined, 234 growth in, 235–236 manufacturing operations compared to, 237–238 small businesses in, 109, 110 Service process design, 417 Services defined, 376 development of, 417 marketing, 376 Services companies market, 392 Service value package, 417 7(a) loans programs, 116 Sexual harassment, 277, 344 Shopping agents (e-agents), 444 Shopping goods, 411, 412 Shopping services, 411–412 Shop steward, 639 Shortage, 49 Short-term goal, 185 Short-term outlook, 157, 158 Short-term solvency ratio, 521–522 Silent partner, 121 Singaporean employers, 273–274 Situational approach to leadership, 312–313 decision tree approach, 313 leader-member exchange model, 313 path-goal theory, 313 Skills inventory, 340 Slowdown, 646 Small business, 106–123 See also Entrepreneurship areas of, 108–111 construction, 109 finance and insurance, 109 independent media companies, 111 manufacturing, 109, 110 research-and-development laboratories, 111 retailing, 109 services, 109, 110 transportation, 111 wholesaling, 109 bank credit as source of funds, 591–592 defined, 106 importance of, in U.S economy, 107–108 contributions to big business, 108 innovation, 108 job creation, 107–108 marketing mix and, 396–397 small-business place (distribution) in, 396, 397 small-business pricing in, 396 small-business products in, 396 small-business promotion in, 397 ownership forms, 120–123 cooperatives, 122–123 partnerships, 121–122 sole proprietorship, 120–121 social responsibility and, 87 start-ups (See Small business start-ups) Small Business Administration (SBA), 106 Small Business Development Center (SBDC), 116 Small business investment company (SBIC), 116 Small business start-ups, 112–120 business plan, 113–115 buying existing business, 114 franchising, 114–115 starting from scratch, 115 distinctive competencies in, 112–113 first-mover advantage, 113 identifying new markets, 113 niches in established markets, 112–113 failure in, 119–120 INDEX financing, sources for, 115–116 micro-lending, 119 online, 116 overseas investors, 116 personal resources, 116 SBA financial programs, 116 SBICs, 116 venture capital companies, 116 success in, 120 trends in, 117–118 crossovers from big business, 117–118 e-commerce, 117 global opportunities, 118 minorities and women as owners, 118 survival rates, 118 Smart cards, 559–560 Social consciousness, contemporary, 78–79 Social influences, 390 Socialism, 45, 47 Social learning, 291 Social networking, 393–394 community banking, 559 media, 393 viral marketing and, 393 web-driven revenue with, 394 world and lives improved by, 477–478 Social orientation, 157 Social responsibility, 76–93 approaches to, 86–87 accommodative stance, 87 defensive stance, 87 obstructionist stance, 86 proactive stance, 87 contemporary social consciousness and, 78–79 defined, 76 evaluating, 92 formal organizational dimensions of, 91 ethical compliance, 91 legal compliance, 91 philanthropic giving, 91 government and, 88–90 informal organizational dimensions of, 91–92 organization leadership and culture, 91–92 whistle-blowing, 92 managing, 90–93 organizational stakeholders and, 76–78 programs, implementing, 86–88 small business and, 87 stakeholder model of, 77–78 toward customers, 82–84 toward employees, 84–85 toward environment, 79–82 toward investors, 85–86 Social skills, 279 Sociocultural environment, 42, 377–378 Software, 482, 483–484 Sole proprietorship, 120–121 Solvency ratio, 521–522 current, 521–522 long-term, 522 short-term, 521–522 S&P 500, 587 Spam, 490–491, 492, 493 Span of control, 213–214 S&P Depository Receipts (SPDRS), 587 Special purpose loans, 116 Specialty goods and services, 412 Specialty store, 446 Speculative risk, 611 Speed to market, 416 Spin-off, 128 Spokesperson, manager’s role as, 181 Spoofing, 493 Spyware, 490, 492, 493 Stability, 56–58 defined, 56 inflation and, 56 unemployment and, 56–57, 58 Stabilization policy, 58 Staff authority, 215 Staff members, 215 Staff schedule, 248–249 Stakeholder model of responsibility, 77–78 communities, local and international, 78 customers, 77 employees, 78 investors, 78 suppliers, 78 Standard of living, 52–53 Start-ups See Small business start-ups Statement of cash flows, 518–519 State of certainty, 322 State of risk, 322–323 State of uncertainty, 323 Statutory law, 615 Stock, 126, 577–578 defined, 577 valuation, in IPO, 595–596 Stock broker, 584 Stock exchange, 581–583 Stockholder (or shareholder), 126 Stockholders’ rights, 126 Stock indexes, 585–588 DJIA, 587 index-matching ETFs, 587–588 NASDAQ Composite Index, 587 Russell 2000 Index, 587 S&P 500, 587 Stock investments, 577–578 Stock ownership, 126 Stock split, 596 Stored-value cards, 559–560 Strategic alliances, 127, 155 Strategic goal, 187–188 689 690 INDEX Strategic leadership, 319 Strategic management, 184–189 formulating strategy, 187–189 goals in, 184–185 plans, 189 types of strategies in, 185–186 Strategic plan, 189 Strategy business (or competitive), 186 corporate, 186 defined, 184 formulation, 187–189 goals in, 187–188 matching organization and its environment, 189 SWOT analysis in, 188–189 functional, 186 in national competitive advantage, 151 Strict product liability, 618 Strike, 359–360, 645–646 Strikebreakers, 360, 646 Structures in national competitive advantage, 151 Subprime mortgage lending, 549 Subsidy, 159 Substitute product, 380 Supermarket, 446 Supervisor, 177, 179 “Super Wi-Fi” network, 482 South African Airways (SAA), 203–204 Suppliers information linkages with, 486 in model of social responsibility, 78 Supplier selection, 251 Supply, 48–50 defined, 48 HR forecasting, 339–340 matching, 340–341 laws of, 48–50 in market economy, 47–50 schedule, 48 Supply chain, 257–259 defined, 257 distribution through, 451 management, 258 outsourcing and global, 258, 259 reengineering, for better results, 258 strategy, 257–258 Supply chain management (SCM), 258 Supply curve, 48 Supporting industries, 151 Supportive leader behavior, 314 Surplus, 48 Surveys, 389–390 Sweat equity, 121 SWOT analysis, 188–189 Symbols, cultural, 156 Sympathy (or secondary) strike, 646 Syndicated selling, 444 System software, 482 T Tactical plan, 189 Taft-Hartley Act, 343, 641 enforced resolution, 641 injunctions and cooling-off periods, 641 unfair and illegal union practices, 641 Talent management, 339 Tall organizational structure, 212–213 Tangible personal property, 618 Tangible real property, 618 Target market, 384 See also Market segmentation Tariff, 159 Task-focused leader behavior, 311 Tasks, combining, 294 Tax avoidance, 628–631 IRA tax break, 629–630 life insurance, 630–631 net worth, 630 Tax preparation, 526 Tax services, 508 Taylor, Frederick, 284 Team organization, 219 Teamsters, 357, 638 Team structures, 293–294 Technical skills, 182 Technological environment, 41–42, 378 Technology See Information technology (IT) Telecommuting, 295 Telemarketing, 446 Telephone calls as time waster, 183 Temporary workers, 355–356 Tender offer, 124 Term insurance, 631 Test marketing, 416 Tests in employee selection, 345–346 Theft, 276 Theory X, 285–286 Theory Y, 285–286 Thinking versus feeling, in MBTI, 278 360-degree feedback, 352 Time deposit, 545 Time management skills, 183 Time orientation, 157, 158 Time utility, 236, 375 Time value of money, 576–577, 624–625 Time wasters, 183 Title VII of the Civil Rights Act of 1964, 341–342 Top manager, 178 Tort, 617–618 Total quality management (TQM), 254–257 business process reengineering in, 257 cost of poor quality and, 254–255 customer relations and, 256 defined, 254 INDEX 691 ISO series and, 256 quality improvement teams in, 255–256 quality ownership and, 255 value-added analysis in, 255 Total return, 589 Toxic waste disposal, 81 Trade deficit, 146–148 international (See International trade) show, 459 surplus, 146–148 Trademark, 618 Trading floor, 582 Traditional individual retirement account (IRA), 629–630 Training and development, 350–351 evaluation of training, 350–351 training methods, 350 training needs, assessing, 350 Trait approach to leadership, 310–311 Traits, 310 Transactional leadership, 314 Transformational leadership, 314 Transportation defined, 251 operations, 450–451 small businesses in, 111 Treasurer, 177 Treasury bills (T-bills), 556 Treaty, 143 Trial court, 616 Trojan horses, 490, 493 Troubled Asset Relief Program (TARP), 556–557 Trust services, 548 Turnover, 276 Two-factor theory, 286–287 union membership, trends in, 357, 636–637 anti-unionization activities, 637 workforce composition, 636–637 Union shop, 641 United Auto Workers (UAW), 357, 638 United States (U.S.) business environment, 38–64 economic indicators in, 52–58 economic systems in, 43–47 external environment, 39–43 market systems in, 47–52 price fluctuations in, 37–38 profit and, 38–39 economy managing, 58 small business in, importance of, 107–108 financial system, 545–550 anticrime and antiterrorism regulations, 557 assurances of repayment, 557 electronic technologies in, impact of, 557–560 emergency investment, 556–557 financial institutions in, 545–548 financial services in, 548–550 government intervention for stabilizing, 556–557 judicial system, 616 major trading partners of, 145–146 unionism in, evolution of, 633–635 Unlimited liability, 121 Unrelated diversification, 186 Unsecured loan, 591–592 Upper-middle-income countries, 142 Utility defined, 236 as ethical norm, 73, 74 kinds of, 375 U V Uncertainty acceptance, 157, 158 Uncertainty avoidance, 157, 158 Uncertainty orientation, 157, 158 Unemployment, 56–57, 58 defined, 56 depressions and, 58 problems related to, 57 recessions and, 58 Unethical accounting actions, 525 Unethical behavior, 70 Uniform Commercial Code (UCC), 619 Unionism, 357–358, 633–647 See also Labor unions bargaining perspectives, trends in, 638 collective bargaining, 643–647 evolution of, in U.S., 633–635 labor-management relations, 640–642 reasons for unionizing, 633 today, 357, 636–640 trends in, 636–638 union-management relations, trends in, 637–638 Value-added analysis, 255 Value chain See Supply chain Value package, 410 Values created by marketing, 375–376 cultural, 156 ethics and, 71 in operations, 236–239 adding, through supply chains, 257–259 in operations process, 238–239 in resource transformation process, 237 in service and manufacturing operations, 237–238 utility provided by, 236 Variable cost, 423–424 Venture capital, 592 Venture capital companies, 116 Vestibule training, 350 Vice president, 127, 177, 179 Video conferencing, 479 Video retailing, 449 692 INDEX Vietnam Era Veterans Readjustment Assistance Act, 342 Viral marketing, 393 Virtual leadership, 320–321 Virtual organization, 219, 220 Viruses (computer), 490, 491 Voice technology, 483 Voluntary arbitration, 646 Voluntary bankruptcy, 620 VSAT satellite communications, 480 W Wage reopener clauses, 359, 645 Wages, 346–347 Warehousing, 251, 449–450 Warranty, 619 Water pollution, 81 Web-driven revenue with social networking, 394 West, Ben, 40 Whistle-blower definition of, 85 ethical commitments towards, 85 social responsibility and, 92, 93 Whole-life insurance, 631 Wholesale club, 446 Wholesaling, 440, 441, 443–445 agents, 444 brokers, 444 e-intermediary, 444, 445 merchant, 443–444 full-service, 443 limited-function, 443 small businesses in, 109 Wide area network (WAN), 481 Wi-Fi, 482 Wildcat strike, 646 WiMAX (Worldwide Interoperability for Microwave Access), 482 Wireless local area network (wireless LAN or WLAN), 482 Wireless mooching, 489 Wireless wide area network (WWAN), 481–482 Women as small business owners, 118 Workers’ compensation insurance, 347, 613 Workforce diversity, 354–356 contingent workers, 355–356 defined, 354 knowledge workers, 355 racial and ethnic composition, 354–355 temporary workers, 355–356 in union membership, 636–637 Work groups, forming, 294 Working capital, 591–592 Workplace aggression and violence, 277 Work schedules, modified, 294–296 advantages and disadvantages of, 295–296 alternative workplaces, 295 flextime programs, 295 work-share programs, 294–295 Work sharing (or job sharing), 294–295 Work slowdown, 360 Work team, 215 Workers’ Party (WP), 273 World Bank, 562 World marketplaces, major, 141–143 distinctions based on wealth, 141–142 Europe, 142 North America, 142 Pacific Asia, 142, 143 World Trade Organization (WTO), 145 World Wide Web, 478 Worms (computer), 490 Y Yellow-dog contracts, 640 This page intentionally left blank This page intentionally left blank This page intentionally left blank This page intentionally left blank ... older single, other Family Size 1, 2 3, 4–5, 6+ Income Less than $15,000, $15,000– $24 ,999, $25 ,000–$50,000, $50,000–$100,000, $100,000– $20 0,000, more than $20 0,000 Nationality African, American,... the B2B markets more than $25 trillion in business annually—more than two times the amount of business conducted in the U.S consumer market.16 Services Companies Market firms engaged in the business. .. characteristics of business- to -business (B2B) buying behavior (pp 3 92 396) The various organizational markets exhibit different buying behaviors from those in consumer markets Business marketing