CLEP Marketing

Category - Ethics

Collaboration between a marketing organization and Equifax proposed the creation of a database for small business profiling families’ economic and consumer behavior. This collaboration has the potential of _____________.
  1. Creating a competitive product environment
  2. Invading consumer privacy
  3. Reducing consumer fraud
  4. Increasing mortgage opportunities
  5. Providing a competitive edge to small businesses
Explanation
Answer: B - Collaboration between a marketing organization and Equifax proposed the creation of a database for small business profiling families’ economic and consumer behavior. This collaboration has the potential of invading consumer privacy. Consumers expect a certain level of privacy when providing personal information to businesses and retailers. A database that compiles their information to be provided to small businesses can expose consumers to aggressive selling. It can also lead to loss of privacy and the potential of identity theft.
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