Department of Business Administration and Marketing
Principles of Marketing (MKET 130)
Summer Semester, Track 1, 2011/2012
ExxonMobil: social responsibility in a commodity market "chapter 20" Instructor Name: Omar Omran
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Q1.consider and discuss the impact of the rising petrol on as many other products and services as possible
Increases on gasoline prices definitely affect the consumer in different aspects. Public transportation is one of the most obvious services that will be affected with sky high gasoline prices. Cab drivers and transit centers will increase their rates and consumers might still feel that it is cheaper to ride the bus then to drive their own vehicle. People will try to leave their SUVs at home or even try to get rid of them. Economical cars will be in higher demand then those with big engines. Therefore, it will result in a decrease in sales for the auto dealerships that sell the SUVs. Traveling might become out of the question for a lot of people due to the expensive airfares. This will have a direct effect on small businesses and restaurants that rely on tourism for their main source of income. Consumers will start to notice an increase in prices at the grocery store. Most goods include a freight feein their prices. For example, Monterey County is one of the largest in the agricultural business. Most of the produce is grown locally and shipped all over the world. For that reason someone in the east coast will pay higher prices on the same produce then someone in Monterey because of the freight charges. Overall escalating gas prices will have an effect on all consumers.
Q2.how does the information in this case related to the common criticism that marketing causes prices to higher than they normally would
Marketing is only a small percentage of the cost of crude. The determining factors on the price of oil are speculation, lack of...
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