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CASE STUDY CHAP 7: Michael Phelps: Endorsement deals go up in

smoke!
1, In the context of source effects, discuss why companies scrambled
to sign endorsement deals with Michael Phelps immediately after the
Olympics. How did these source effects change after the picture was
published?
Michael Phelps is a star power. He is a new sports superstar! A hero for
young kids to admire. An athlete who reflected the results of hard work
and determination.
He also got a lot of lucrative endorsements deals from known sponsors
like Speedo, Visa, Omega, Power Bar, AT&T, and Subway, Rosetta
Stone.
By The ABC Model of attitudes, an attitude has three components:
affect, behavior, and cognition. Affects describe how or the way a
consumer feels about an attitude object. Behavior refers to a
consumers actions with regard to an attitude object. Ang Cognition is
the beliefs a consumer has about an attitude object. "From a
marketing perspective, athletes are brands. And if you are going to
attempt to create and monetize a brand image, when you are publicly
seen doing something directly contrary to that a brand image -- in
simple black-and-white terms -- that has a direct impact in on your
ability to monetize that brand image". So when the athlete had a
disappointed and non responsible for the bad behavior, he will be
dropped sponsorship deals like the image of Michael using marijuana
appears, Kellogg and Subway dropped their sponsorship deals soon
afterward. In 2009, a photo of Phelps smoking pot out of a bong
surfaced in a British newspaper. Source now became negative,
especially for impressionable children. Kellogg's and Subway dropped
endorsement deals. All others stood by.
2, Using a multiattribute model for Kelloggs cereal, de- scribe how
consumers might develop a positive or negative attitude toward the
Corn Flakes brand. How would Michael Phelps picture in the British
paper influence the multi attribute model?
When Bong picture published, it hurts the brand due to users
disappointment. According to the multi attribute model before A
picture of Michael Phelps smoking pot appears in the British tabloid,
Kelloggs Corn Flakes in good value was 10 while low in sugar and

popular with Whole Family account for 8 and 6.5 (respectively). Overall
attitude score was 24.5. However, as a result, Kellogg decided to drop
Phelps very fast but it still hurt Popular with Whole Family of the Corn
Flakes brand. It made the beliefs decreased to 4.5 and attitude score
22.5 (fall 2) while good value and low in sugar had no change.
Therefor, Kelloggs Corn Flakes decided to drop their sponsorship just
one week after the incidence. But the image of the brand had been
already violated.

CASE STUDY CHAP 8: Domino's Dilemma


1, Is the decision about what to eat for dinner and more specifically
what type of pizza to order an example of extended, limited, or
habitual
problem
solving?
The decision to eat what for dinner: use simple decision rules to choose
among alternatives. The decision to eat what type of pizza is habitual
problem. The type of pizza can be limited depending on the customer.
It's a Limited problem solving. It has a low risk and involvement,
requires little research, choice often influenced by website or store
pictures.
2. Describe how the video would influence a consumer during the
information search stage of this purchase decision.
The whole customers of Pizza Domino, who have seen that video will
banned that brand. And Customers would most likely get turned off
from ordering pizza or order from another company.
People would not buy anything from them, at least until know that the
problem were solved. They would withdraw Domino's pizza from their
list immediately. How was the response from the company? Did they
take any action? is it a common situation in the company?
3. How might this incident affect brand loyalty for Domino's in the
short-term? In the long-term?
In the short-term, if the company is not economically stable, this
incident can basically close a company,
Customer may choose not to buy from Dominos.
Affect their brand loyalty more.
In the long-term, company can recover and resume operation
"normally". Because People tend to forget incidences like this.

4. Would you have done anything differently if your employees posted


a disparaging or obscene video?
No, I would do the same thing that Domino's did, go after them for two
reasons: #1 Because they did something wrong and they have to pay
for that, and #2 to show customers that you care about them, and will
do everything to provide them the best quality pizza.
We will give an apology to all its customers.
For these special customers, we will have the upgrade policy for
customer service by discount or promotion.

CASE STUDY Chap 9: Giving and receiving on Freecycle.org


1, Why do you think Freecycle.org has achieved such high levels of
growth in such a short period of time?
Freecycle .org has attained such a higher levels of the growth due to
the following reasons (freecycle.org, 2012):
Initially, as this centres on concept of the recycling this goes for
preservation of natural environment.
Secondly, doe to this offers low prices for the items, which have been
still good as well as reusable.
Thirdly, as organizational structure has been highly difficult resilient as
well as flexible, because this revolves around Internet, which reaches
almost all parts of globe.
Fourth, as this builds the bridges as well as communities, because this
centres on concepts of the neighbourhood as well as sharing.
Fifth & last, as joining has been as easy as tapping keys as well as
website has been present at 24/7 per week that makes this present to
anybody who has been willing to sell & to purchase the used items.
Freecycle.org has gained such high levels of development because first
and foremost is offering free membership opportunities; hence any one
can join regardless of their financial status. In addition, the free
exchange of old junk properties is another catalyst of Freecycle swift
growth. Secondly since, it uses a social media channel to publicize its
self majority of people who have access to the social networks get
linked with the organization; thus achieving high levels of growth in
such a short period of time. Additionally, Freecycle organization has
provided the remedy for many people who care for the safety of their
environs since dumping electronic gadgets and creating landfills is a

bother to people who care for their ecosystem. As if not enough, by


providing people with somewhere to dispose off their junk is one way
the organization has gained its popularity and growth in such a short
time. Freecycles given options of interested members joining the
organization through the groups closer to them, has also contributed
immensely to its high levels of growth since people can join the
organization from different geographical locations, as long as they
have a close group to join and become a member of the wider
community.
2, Freecycle created an alternative disposal option that is rapidly
growing. Discuss ways that freecycling might affect the purchase
habits of consumers.
Freecycle has not only created a new way of disposal but also
increased the life of durable products. It has also effected the purchase
habits of consumers, consider an old bed/couch or mattress a person
would like to replace now the old one which is in fairly good condition
need to be disposed if he is throwing away he needs to spend on
transport also for disposal. Now if he finds someone to pick this up for
free he saves the cost and the person who picks one need not to buy
new one.
It is valid that Freecycle created an alternative disposal option that is
rapidly growing since it has quite a sizable number of followers.
However, freecycling might affect the purchase habits of consumers in
the following ways as discussed in the following: To begin with, the
purchases habits might increase since people have optional ways of
disposing off their old junk properties. Furthermore, people might be
motivated to purchase new items since they can share their old
properties with other people interested in having them. On the other
hand, it might discourage some people from endeavoring to purchase
new commodities since they can get second hand free assets they
need through Freecycle.org. The purchase habit for some Freecycle
members would change and become dependent on newer
commodities offered by the other available markets. Therefore, the
customers habits might be affected in terms of increased interests of
new and old products since there is a free trade and a money
exchange market at the same time.
3, Should for-profit businesses like eBay get into the freecycling
business? Should companies motivate more consumers to give things

away that they might otherwise be able to sell or auction? Can they stil
make a profit while they help to eliminate waste?
Profit businesses like eBay should get into freecycling business since
this organization has many members willing to purchase new products
especially when they have disposed off their old items. On top of that,
eBay might get a lot of customers from Freecycle.org since there are
enormous opportunities on business transactions of business through
the online business links. Companies should motivate more customers
to give things away since they will create a business environ that
would support auctioning and selling of new items since they will be
done with the old junk items. Furthermore, the companies would create
market for their new products, as well as, opportunities of advertising
and marketing their new products to their ready market. The
companies might make profits while they help to eliminate waste,
although not so high profits since their market is not on the Freecycle
business rather it is on the customers who buy their new commodities.
Furthermore, these companies will be able tap wider range of
customers how are willing to purchase new products since they will
have already given out their old commodities.
CASE STUDY CHAP 10: Parrot heads unite
1, How can we consider Jimmy Buffett fans as members of a reference
group? A brand community? A consumer tribe?
Reference Group: an actual or imaginary individual or group conceived of having
significant relevance upon an individuals evaluations, aspirations, or behavior.
(informational, utilitarian, value-expressive).
Brand community: Group of consumers who share a set of social relationships based on
usage or interest in a product.
Consumer tribe: group of people who share a lifestyle and who identify with each other
because of a shared allegiance to an activity or product.
We think that Buffets Fans are both a brand community and a consumer tribe as they
adopt the island escapism lifestyle, a common interest in it and form new friendships
amongst themselves.
Brand communities have events like brandfests which is similar to that of Buffets
concert tours, casinos, hotels and charity events.
Buffett Fans are considered members of a reference group because they share the same
values as far as the Buffett franchise goes. Jimmy Buffett fans are a consumer tribe
because they share the same moral beliefs including philanthropy and enjoying life. The
fans relate to Buffett and use his franchise as a way to escape. Also, the fans involved in
the Parrothead club do volunteer work, which is Jimmy Buffetts philosophy so that
makes them a consumer tribe. Buffett fans all share the same social ideals including
living a carefree lifestyle and also getting to know one another during shows and

gatherings at venues which qualifies them as a brand community. Buffett fans are also a
part of a brand community because a lot of the fans plan their vacations around the
Buffett events which are a way for them all to enjoy and involve themselves with a cause
that they all find significant.
2. Consider your responses to question 1. What kind of opportunities does the existence
of the Buffett community present to marketers? Develop a list of specific marketing and
promotional tactics.
The Buffett community allows for marketers to specifically target fans by offering things
such as cruises and restaurants that the fans will be able to indulge in and use as a
gateway into Buffetts lifestyle. Marketers can gain revenue by renting out venues to hold
concerts and by allowing fans a place to gather and share the same beliefs. Fans also use
the concerts as a way to tailgate, so some venues charge admission for the fans to get into
the tailgating areas. Having events and concerts centered around Buffett causes a spike in
tourism for marketers since the fans come from various locations and are willing to take
the time and money necessary to participate in events. Specifically, marketers use
Buffett-themed restaurants in Caribbean destinations to entice fans into participating. To
the fans, Buffett represents a care-free lifestyle so fans are willing to travel to laid-back
destinations to feel as if they too are living the lifestyle that Buffett would live. Marketers
also charter buses to get to Buffett concerts because fans will pay for it.
3. Compare and contrast Harley enthusiasts with Jimmy Buffett fans.
Both the Harley enthusiasts and Buffett fans are similar because they are faithful to their
brand and they are joined together by the ideals of each company. The difference between
Harley enthusiasts and Buffett fans is that Harley enthusiasts more centered on the class
aspect of the product while Buffett fans are joined together by similar lifestyles and
dedications to Buffett. Buffett fans are more loyal in the sense that they center their
vacations around Buffett themed events and concerts while Harley enthusiasts are loyal in
the sense that they are a part of an exclusive club of Harley owners.