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Chapter 27: Q.9 (page 621)

A few years ago, the U.S. government created a "Do Not Call Registry" and forbade marketing firms from calling people who placed their names on this list. Today, an increasing number of companies are sending mail solicitations to individuals inviting them to send back an enclosed postcard for more information about the firms' products. What these solicitations fail to mention is that they are worded in such a way that someone who returns the postcard gives up protection from telephone solicitations, even if they are on the government's "Do Not Call Registry." In what type of behavior are these companies engaging? Explain your answer. (Hint: Are these firms meeting the letter of the law but violating its spirit?)

Short Answer

Expert verified

The companies do not phone the people who have enrolled with the Registry; instead, they use a different method to contact them.

Step by step solution

01

Introduction.

Marketing is the method of recruiting new clients or customers to your products and services. The key term in this definition is "process." Marketing encompasses market research, advertising, sales, and distribution.

02

Given Data.

Firms that send solicitation mail to individuals are legally bound by the "Do Not Call Registry" restrictions. The companies do not phone the people who have registered with the Registry; instead, they utilize a different means to contact them.

03

Explanation.

Marketing firms breach the basic purpose of government regulation by sending mail to people offering information about the production.

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Most popular questions from this chapter

An years past, firms around the world have secretly engaged in collusive agreements to restrain production and push prices above competitive levels.

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An years past, firms around the world have secretly engaged in collusive agreements to restrain production and push prices above competitive levels.

Evidence compiled by government officials investigating such agreements has revealed that conspiring firms often utilize similar methods of establishing and enforcing collusive restraints of trade. Most agreements, for instance, assign to each firm an allowed market share, a permitted region of operations, or an approved set of customers. In addition, participating firms commonly are required to exchange sales information so that they can monitor adherence to their agreements to restrain trade. In this chapter, you will learn why firms that typically utilize these techniques to formulate and maintain collusive agreements engage in secret conspiracies: Such agreements are illegal under U.S. antitrust laws.

Explain the main rationales for regulation of industries that are not inherently monopolistic
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