and p = 120 - 2Q2 for other town residents.

What is the town's total demand function (Q = Q1 +

Q2 as a function of p)? Use a diagram to illustrate your

Use a supply-and-demand diagram to explain the statement "Talk is cheap because supply
exceeds demand." At what price is this comparison being made?

Lewit and Coate (1982) estimated that the price elasticity of demand for cigarettes is -0.42.
Suppose that the daily market demand for cigarettes in New York City is Q = 20,000p-0.42 and
that the inverse market supply curve of cigarettes in the city is p = 1.5pw, where pw is the
wholesale price of cigarettes. (That is,

See Full Questions And Answers at solutionrank.com

Suppose that, prior to the passage of the Truth in Lending Simplification Act and Regulation Z,
the demand for consumer loans was given by Qdpre-TILSA = 12 - 100P (in billions of dollars)
and the supply of consumer loans by credit unions and other lending institutions was QSpre-
TILSA = 5 + 100P (in billions of dollars)

Suppose that, prior to other firms entering the market, the maker of a new smart-phone (Way
Cool, Inc.) earns $80 million per year. By reducing its price by 60 percent, Way Cool could
discourage entry into "its" market, but doing so would cause its profits to sink to −$2 million.
By pricing such that other firms woul

Given that Kip's utility function is U(qc, qm) = qc0.5 + qm0.5, what is his expenditure function?

Fiona requires a minimum level of consumption, a threshold, to derive additional utility: U(X, Z)
is 0 if X + Z ( 5 and is X + Z otherwise. Draw Fiona's indifference curves. Which of our
preference assumptions does this example violate?

See Full Questions And Answers at solutionrank.com

The American Baker's Association reports that annual sales of bakery goods last year rose 15
percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase
was attributed to a report that diets rich in bran help prevent certain types of 370 cancer. You are
the manager of a bakery that pro

Given the pork supply function in Equation 2.6, how does the supply function that is only a
function of price, Equation 2.7, change if the price of hogs doubles to $3 per kg?

Elise consumes cans of anchovies, q1, and boxes of biscuits, q2. Each of her indifference curves
reflects strictly diminishing marginal rates of substitution. Where q1 = 2 and q2 = 2, her
marginal rate of substitution between cans of anchovies and boxes of biscuits equals -1. Will she
prefer a bundle with three cans of
David's utility function is U = q1 + 2q2. Describe his optimal bundle in terms of the prices of q1
and q2?

See Full Questions And Answers at solutionrank.com

On July 1, 1965, the federal ad valorem taxes on many goods and services were eliminated.
Comparing prices before and after this change, we can determine how much the price fell in
response to the tax's elimination. When the tax was in place, the tax per unit on a good that sold
for p was p. If the price fell by p wh

What is the effect of a 50% income tax on Dale's budget line and opportunity set?

In a commentary piece on the rising cost of health insurance ("Healthy, Wealthy, and Wise,"
Wall Street Journal, May 4, 2004, A20), economists John Cogan, Glenn Hubbard, and Daniel
Kessler stated, "Each percentage-point rise in health-insurance costs increases the number of
uninsured by 300,000 people." Assuming that t

Use indifference curve-budget line diagrams to illustrate the results in Table 3.2 for each of these
utility functions? Table 3.2: Type of Solution for Five Utility Functions i > 0, j > 0, 0 < α 6 ( 0,
¬and ( < 1.

See Full Questions And Answers at solutionrank.com

Calculate the elasticity of demand, if the demand function is a. Q = 120 - 2p + 4Y, at the point
where p = 10, Q = 20, b. Q = 10p-2.

In the application "Aggregating the Demand for Broadband Service" (based on Duffy-Deno,
2003), the demand function is Qs = 5.97p-0.563 for small firms and Ql = 8.77p-0.296 for larger
ones. As the graph in the application shows, the two demand functions cross. What are the
elasticities of demand for small and large firm

For the utility function U(q1, q2) = q1ρ + q2ρ , solve for the optimal q1 and q2?

You are the manager of a firm that sells a "commodity" in a market that resembles perfect
competition, and your cost function is C(Q) = 2Q + 3Q2. Unfortunately, due to production lags,
you must make your output decision prior to knowing for certain the price that will prevail in the
market. You believe that there is a

See Full Questions And Answers at solutionrank.com

Suppose we calculate the MRS at a particular bundle for a consumer whose utility function is
U(q1, q2). If we use a positive monotonic transformation, F, to obtain a new utility function,
V(q1, q2) = F(U(q1, q2)), then this new utility function contains the same information about the
consumer's rankings of bundles. Pro
Wolf's utility function is U = aq10.5 + q2. For given prices and income, show how whether he
has an interior or corner solution depends on a?

Vasco likes spare ribs, q1, and fried chicken, q2. His utility function is U = 10q12q2. His weekly
income is $90, which he spends on ribs and chicken only. a. If he pays $10 for a slab of ribs and
$5 for a chicken, what is his optimal consumption bundle? Show his budget line, indifference
curve, and optimal bundle, e1

Suppose the demand function for carpenters is Q = 100 - w, and the supply curve is Q = 10 + 2w
- T, where Q is the number of carpenters, w is the wage, and T is the test score required to pass
the licensing exam. By how much do the equilibrium quantity and wage vary as T increases?

See Full Questions And Answers at solutionrank.com

You are the manager of a monopoly that sells a product to two groups of consumers in different
parts of the country. Group 1's elasticity of demand is −3, while group 2's is −5. Your
marginal cost of producing the product is $40. a. Determine your optimal markups and prices
under third-degree price discrimination

An advertisement in the local paper offers a "fully loaded" car that is only six months old and has
only been driven 5,000 miles at a price that is 20 percent lower than the average selling price of a
brand new car with the same options. Use precise economic terminology to explain whether this
discount most likely refl

Essentially none of the savings from removing the federal ad valorem tax were passed on to
consumers for motion picture admissions and club dues (Brownlee and Perry, 1967; see Exercise
6.2). List the conditions (in terms of the elasticities or shapes of supply or demand curves) that
are consistent with 0% pass-through

Heathrow Airport Holdings is a private company that operates Heathrow Airport in London.
Suppose the company recently commissioned your consulting team to prepare a report on traffic
congestion at Heathrow. Your report indicates that Heathrow is more likely to experience
significant congestion between July and Septembe

See Full Questions And Answers at solutionrank.com

Green et al. (2005) estimate that for almonds, the demand elasticity is -0.47 and the long-run
supply elasticity is 12.0. The corresponding elasticities are -0.68 and 0.73 for cotton and -0.26
and 0.64 for processing tomatoes. If the government were to apply a specific tax to each of these
commodities, what would be th

Draw a figure to illustrate the Application "Quitting Smoking." That is, show why as the price of
cell phones drops, less tobacco is consumed? (Draw a figure like panel a of Figure 4.2 with cell
phones on the horizontal axis and tobacco on the vertical axis. However, unlike in Figure 4.2, the
price-consumption curve s

Using calculus, determine the effect of an increase in the price of beef, pb, from $4 to $4.60 on
the equilibrium price and quantity in the Canadian pork example. (Conduct an analysis that
differs from that in Solved Problem 2.1 in that the shock is to the demand curve rather than to the
supply curve.) Illustrate your

After Hurricane Katrina damaged a substantial portion of the nation's oil-refining capacity in
2005, the price of gasoline shot up around the country. In 2006, many state and federal elected
officials called for price controls. Had they been imposed, what effect would price controls have
had? Who would have benefited,

See Full Questions And Answers at solutionrank.com

According to Borjas (2003), immigration to the United States increased the labor supply of
working men by 11.0% from 1980 to 2000, and reduced the wage of the average native worker
by 3.2%. From these results, can we make any inferences about the elasticity of supply or
demand? Which curve (or curves) changed, and why?

Some of the largest import tariffs, the tax on imported goods, are on shoes. Strangely, the higher
the tariff, the cheaper the shoes. The highest U.S. tariff, 67%, is on a pair of $3 canvas sneakers,
whereas the tariff on $12 sneakers is 37%, while $300 Italian leather imports have no tariff.
(Adam Davidson, "U.S. Tari

Two firms compete in a homogeneous product market where the inverse demand function is P =
20 − 5Q (quantity is measured in millions). Firm 1 has been in business for one year, while firm
2 just recently entered the market. Each firm has a legal obligation to pay one year's rent of $2
million regardless of its produc

Governments frequently limit how much of a good a consumer can buy. During emergencies,
governments may ration "essential" goods such as water, food, and gasoline rather than let their
prices rise. Suppose that the government rations water, setting quotas on how much a consumer
can purchase. If a consumer can afford to

See Full Questions And Answers at solutionrank.com

In 2005, Americans bought 9.1 million home radios for $202 million and 3.8 million home-
theater-in-a box units for $730 million (TWICE, March 27, 2006,
www.twice.com/article/CA6319031.html). Suppose that the average consumer has a Cobb-
Douglas utility function and buys these two goods only. Given the results in Solved

Green, Howitt, and Russo (2005) estimate the supply and demand curves for California
processing tomatoes. The supply function is ln Q = 0.2 + 0.55 ln p, where Q is the quantity of
processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand
function is ln Q = 2.6 - 0.2 ln p + 0.15

Derive Ryan's demand curve for q1, given his CES utility function is U = q1 + q2?

The application "Indifference Curves Between Food and Clothing" postulates that there are
minimum levels of food and clothing necessary to support life. Suppose that the amount of food
one has is F, the minimum level to sustain life is F, the amount of clothing one has is C, and the
minimum necessary is C. We can then

See Full Questions And Answers at solutionrank.com

According to a 2010 survey of British students

(www.leedsuniversityunion.org.uk/helpandadvice/ money/costofliving), a typical student had a
budget of £18.8 per week to spend on mobile telephones, Internet access, and music. That
student spent about 45% on phones, 28% on Internet access, and 27% on music. Estimate th

In previous years, gasoline was less expensive in the United States than in Canada, but now, due
to a change in taxes, gasoline costs less in Canada than in the United States. How will the
gasoline-purchasing behavior of a Canadian who lives near the border and can easily buy
gasoline in either country change? Your ans

The 9/11 terrorist attacks caused the U.S. airline travel demand curve to shift left by an estimated
30% (Ito and Lee, 2005). Use a supply-and demand diagram to show the likely effect on price
and quantity (assuming that the market is competitive). Indicate the magnitude of the likely
equilibrium price and quantity eff

If Philip's utility function is U = 2q10.5 + q2, what are his demand functions for the two goods?

See Full Questions And Answers at solutionrank.com

Phil's quasilinear utility function is U(q1, q2) = ln q1 + q2. Show that his MRS is the same on all
of his indifference curves at a given q1?

Are predictions using the supply-and-demand model likely to be reliable in each of the following
markets? Why or why not? a. Apples b. Convenience stores c. Electronic games (a market
dominated by three firms) d. Used cars

An increase in the minimum wage could raise the total wage payment, W = wL(w), where w is
the minimum wage and L(w) is the demand function for labor, despite the fall in demand for
labor services. Show that whether the wage payments rise or fall depends on the elasticity of
demand of labor.

In 2005, a typical U.S. owner of a home theater (a television and a DVD player) bought 12 music
CDs (q1) per year and 6 Top-20 movie DVDs (q2) per year. The average price of a CD was
about p1 = $15, the average price of a DVD was roughly p2 = $20, and the typical consumer
spent $300 on these entertainment goods.17 Base

See Full Questions And Answers at solutionrank.com

Diogo's utility function is U(q1, q2) = q10.75q20.25, where q1 is chocolate candy and q2 is
slices of pie. If the price of a chocolate bar, p1, is $1, the price of a slice of pie, p2, is $2, and Y
is $80, what is Diogo's optimal bundle?

Using the estimated demand function for processed pork in Canada, Equation 2.2, show how the
quantity demanded, Q, at a given price changes as per capita income, Y, increases slightly (that
is, calculate the partial derivative of the quantity demanded with respect to income). How much
does Q change if income rises by $

What happens to a consumer's optimal choice of goods if all prices and the consumer's income
double? (What happens to the intercepts of the budget constraint?)

Canada provided a 35% subsidy of the wage of employees of video game manufacturers in 2011.
("Video game makers say subsidies are vital," CBC News, June 4, 2011.) a. What is the effect of
a wage subsidy of the equilibrium wage and quantity of workers? b. What happens when the
wage subsidy rate falls? c. What is the

See Full Questions And Answers at solutionrank.com

Given the answer to Exercise 2.3, what effect does a U.S. quota on steel of QÌ… > 0 have on the
equilibrium in the U.S. steel market? (The answer depends on whether the quota binds: is low
enough to affect the equilibrium.)

Use a graph to show how the analysis changes in the Challenge if Max and Bob view e-books
and printed books as imperfect substitutes?

Solved Problem 2.4 claims that a new war in the Persian Gulf could shift the world oil supply
curve to the left by 3 million barrels a day or more, causing the world price of oil to soar
regardless of whether we drill in the ANWR. How accurate is this claim? Use the same type of
analysis as in the solved problem to cal

Explain why economists believe that indifference curves are convex. Give as many reasons as
you can?

See Full Questions And Answers at solutionrank.com

Tiffany's constant elasticity of substitution (CES) utility function is U(q(1, q(2) = (q(1 ¬ + q(2)1/
(¬. Show that there is a positive monotonic transformation such that there is an equivalent utility
function (one with the same preference ordering) U(q1, q2) = q(1¬ + q(2?
Can an indifference curve be downward sloping in one section, but then bend backward so that it
forms a "hook" at the end of the indifference curve?

Ethanol, a fuel, is made from corn. Ethanol production increased more than 8.5 times from 1,630
million gallons in 2000 to 13,900 million gallons in 2011 (www.ethanolrfa.org/pages/statistics).
Use a supply-and-demand diagram to show the effect of this increased use of corn for producing
ethanol on the price of corn and

Explain why economists assume that the more-is-better property holds. Give as many reasons as
you can?

See Full Questions And Answers at solutionrank.com

Andy purchases only two goods, apples (q1) and kumquats (q2). He has an income of $40 and
can buy apples at $2 per pound and kumquats at $4 per pound. His utility function is U(q1, q2) =
3q1 + 2. What is his marginal utility for apples, and what is his marginal utility for kumquats?
What bundle of apples and kumquats s

Research the price schedule at your local movie theater multiplex. What pricing strategy
accounts for any price differentials you discover? Why don't matinee prices constitute price
discrimination against those who don't qualify for the discounts?

Distinguish among grassroots marketing, viral marketing, and buzz marketing.

Don is altruistic. Show the possible shape of his indifference curves between charitable
contributions and all other goods. Does this indifference curve violate any of our assumptions?
Why or why not?

See Full Questions And Answers at solutionrank.com

The supply function is Q = 20 + 3p - 20r, and the demand function is Q = 220 - 2p, where r is the
rental cost of capital. How do the equilibrium price and quantity vary with r?

David consumes two things: gasoline (G) and bread (B). David's utility function is U(q1, q2) =
10q10.25q20.75. a. Derive David's demand curve for gasoline. b. If the price of gasoline rises,
how much does David reduce his consumption of gasoline, (q1/ (p1? c. For David, how does
(q1 / (p1 depend on his income? That

What are two major victories achieved by the Uruguay Round of GATT conferences?

What are core regions? Why do marketers try to identify these regions?

See Full Questions And Answers at solutionrank.com

Which sales forecasting technique(s) are most appropriate for each of the following products?
Prepare your arguments in pairs or teams: a. Post Shredded Wheat breakfast cereal b. Coach
handbags c. UPS Store copy shops d. Time magazine

For what reasons might a firm choose an option other than making a good or service in-house?
Why is outsourcing on the rise? How is offshoring different from outsourcing?

Explain how marketers can turn customers into advocates.

Outline the development and current status of the marketing research function.

See Full Questions And Answers at solutionrank.com

Do you agree with countertrade as a legitimate form of conducting business? Why or why not?
Describe a countertrade agreement that Microsoft might make in another country.

In pairs, discuss the market situations that exist for the following products. Defend your answers
and present them to the class. a. MP3 players b. Golf clubs c. Soybeans d. Remote control car
alarms e. Razors

Why is it more expensive to buy beer and a hot dog at a Major League Baseball game than at
local retail stores?

Define and give an example of each of the methods of gathering survey data. Under what
circumstances should researchers choose a specific approach?

See Full Questions And Answers at solutionrank.com

The marketing research staff at Cleveland-based Cyber Novelties has developed the following
sales estimates for a proposed new item the firm plans to market through direct mail sales:
Proposed Selling Sales Estimate Price (units) $ 8 ........... 55,000 10 ........... 22,000 15 ...........
14,000 20 ........... 5

Identify a branded product to which you are loyal, and explain why you are loyal to the product.
What factors might cause your loyalty to change?

What are some of the environmental factors that may influence buying decisions? Identify
organizational factors that may influence buying decisions. Describe the role of the professional
buyer.

Explain the advantage of modified breakeven analysis over the basic breakeven formula.

See Full Questions And Answers at solutionrank.com

What is the cohort effect? What event-or events-do you consider significant enough to have
influenced and bound together your generation?
1. In their first days of operation, some Fresh & Easy stores sold out of certain items, leaving the
shelves empty. In the United States, where abundance is an important cultural trait, the image of
empty shelves created a poor first impression. What can Fresh & Easy do to correct this
impression? 2. Some observers cri

Describe business intelligence.

Why are there more steps in the organizational buying process than in the consumer buying
process? Explain why feedback between buyers and sellers is important to the marketing
relationship.

See Full Questions And Answers at solutionrank.com

Musical artists earn only about 9 percent in royalties per CD, using a royalty base of retail price
less 25 percent for packaging costs. The rest goes to the producer and to cover recording costs,
promotion, copies given away to radio stations and reviewers, and other costs such as videos.
What do you think happens to

Describe each of the four types of business partnerships.

Visit the Web site of the World Trade Organization (www.wto.org). Make a list of the current
policy initiatives and their current status. Then, review two recent trade disputes. What type (or
types) of products are involved? Which nations are involved? How does the WTO resolve such
disputes?

What is the difference between a list price and a market price?

See Full Questions And Answers at solutionrank.com

What are the benefits to firms that decide to engage in global marketing?

How are the following prices determined and what do they have in common? a. Ticket to a local
museum b. Your college tuition c. Local sales tax rate d. Printing of business cards e. Lawn
mowers

What is an application service provider (ASP)? How does it work?

Define and describe the different types of contractual agreements that provide flexible
alternatives to exporting.

See Full Questions And Answers at solutionrank.com

Why is competitive bidding an important factor in major purchase decisions like vehicles for a
police force, the construction of a bridge, or the manufacture of military uniforms?
List and explain the steps in the marketing research process. Trace a hypothetical study through
the stages in this process.

Almost every day, it seems, we hear something on the news about the eating habits of U.S. adults
and children. For instance, you may hear a piece saying kids under six years of age snack mostly
on fruit, and dieting may be on the wane. But how do we know this? Where does such
information come from? The NPD Group is one

Visit the Web site for a large company such as General Mills, Kraft Foods, Ford, Sony, or Wal-
Mart. Look for ways the firm practices differentiated marketing. How do you think this approach
benefits the firm?

See Full Questions And Answers at solutionrank.com

SAS and SPSS offer statistical analysis products widely used by marketing professionals. Visit
each company's Web site (www.sas.com and www.spss.com) and learn more about their
products, including actual customer experiences. Prepare a brief report on what you learned.

Give an example of each of the major categories of pricing objectives.

Why has the progress of the WTO been slow?

Contrast qualitative and quantitative sales forecasting methods.

See Full Questions And Answers at solutionrank.com

Explain how a firm goes about evaluating the lifetime value of a customer.

On your own or with a classmate, select one of the following products. Visit the firm's Web site
to see how the product is positioned, then create an advertisement showing how you think
marketers could reposition the product to gain greater market share. a. Odwalla nutrition bars b.
Kleenex tissue c. Axe body wash d. U

Classify each of the following as a business product or a consumer product: a. Computer

workstation b. Tube of toothpaste c. Fleet of delivery trucks d. Bulk order of flour e. Diamond
earrings f. Jason Mraz music CD

With a teammate, choose one of the following companies. Create a plan to attract customers at
the first level of the relationship marketing continuum-price-and move them to the next level
with social interactions. Present your plan to the class. a. Dog-grooming service b. Health spa c.
Surfboard or snowmobile manufactu

See Full Questions And Answers at solutionrank.com

What are the three alternatives for first-time exporters to reach foreign customers?
When the economy falters, consumers naturally tighten their belts. They drive fewer miles, make
smaller purchases, and eat out less often. None of this is good news for the restaurant industry,
which serves more than 70 billion meals each year and employs more than 13 million workers.
But restaurant owners and marketer

What are the two different classifications of tariff? What is each designed to do?

Staples recently established its Easy Rebates program in which customers can submit most of
their rebate applications online for products purchased over the Internet, through the catalog, and
in Staples stores. Customers may also submit several rebates at once and receive e-mails about
the status of their rebates at ev

See Full Questions And Answers at solutionrank.com

How does an import quota restrict trade?

Explain how the use of yield management can result in greater revenue than other pricing
strategies.

How can locating the breakeven point assist in price determination?

Explain why a large firm such as General Mills might use national account selling to strengthen
its relationship with a chain of supermarkets in the Midwest.

See Full Questions And Answers at solutionrank.com

What are the practical problems in applying price theory concepts to actual pricing decisions?

What are the six categories generally used to position a product?

Recently, Lexus introduced a "Pebble Beach" edition of the Lexus ES model. Go to the Lexus
Web site (www.lexus.com) and research the marketing relationship between Lexus and the
Pebble Beach Resort. What type of marketing relationship is this? How does the Pebble Beach
edition of the Lexus ES differ from other models?

Why is competitive pricing risky for marketers?

See Full Questions And Answers at solutionrank.com

What is sampling? Explain the differences between probability and nonprobability samples and
identify the various types of each.

Describe some of the factors that characterize U.S. government purchases. Why are institutional
markets particularly challenging?
What are the major price implications of the PIMS studies? Suggest possible explanations for the
relationships the PIMS studies reveal.

Review the material on relationship marketing in the chapter and then visit the three Web sites
that follow. Identify at least three ways in which the brand's marketers have applied the
principles of relationship marketing. a. Sony (www.sony.com) b. Swiffer (www.swiffer.com) c.
Cannondale (www.cannondale.com)

See Full Questions And Answers at solutionrank.com

What are AIO statements? How are they used by marketers?

What is the difference between a skimming price strategy and a penetration pricing strategy?
Under which circumstances is each most likely to be used?

Explain the advantages and drawbacks of using incrementalcost pricing rather than full-cost
pricing.

How is segmentation by family lifecycle and household type useful to marketers? Briefly
describe your own family in these terms, identifying characteristics that might be helpful to
marketers for a firm selling HDTVs.

See Full Questions And Answers at solutionrank.com

In what conditions is a global marketing strategy generally most successful?

Identify each factor influencing elasticity and give a specific example of how it affects the
degree of elasticity in a good or service.

What are the differences between full-service and limited-service research suppliers?

Public funding of national parks has been declining for many years. What would you expect to
happen to entry and use fees in this case? Research fees at parks in your state or region to verify
your answer and report to the class.

See Full Questions And Answers at solutionrank.com

Describe the experimental method of collecting primary data and indicate when researchers
should use it.

What is an affinity marketing program?

What types of factors might the firm monitor in its relationships?

Choose a consumer products Company such as Procter & Gamble, Unilever, or Colgate. Visit
that company's Web site. What strategy or strategies does the firm employ for reaching its target
markets? Does it rely more on undifferentiated or differentiated marketing?

See Full Questions And Answers at solutionrank.com

What type of nation benefits most from countertrade? Why?

Some finance experts advise consumers not to worry about rising gasoline prices, the cost of
which can easily be covered by forgoing one takeout meal a month, but to worry about how high
energy prices will affect the rest of the economy. For example, each dollar-a-barrel price increase
is equivalent to a $20 million-a-

On your own or with a partner, choose one of the following consumer products and think about
how it could be used as a business product. Then create a business advertisement for your
product. a. Pet care products b. Gardening tools c. Shampoo d. Bottled water e. Laptop computer
f. Vacuum cleaner

Give an example of a straight rebuy and a modified rebuy. Why is new-task buying more
complex than the first two buying situations?

See Full Questions And Answers at solutionrank.com

How do pricing objectives for a global firm differ from those used generally?

How does a positioning map work? What are its benefits?

Marriott has one of the oldest customer loyalty programs in the hotel industry. Visit the Web site
(marriott.com/rewards/rewards-program.mi) to learn more about the Marriott Rewards program.
How does the program work? What kinds of benefits are available to customers?

Why is a nation's infrastructure an important factor for global marketers to consider?

See Full Questions And Answers at solutionrank.com

In small teams, research the buying process through which your school purchases the following
products: a. Lab equipment for one of the science labs b. The school's telecommunications
system c. Food for the cafeteria d. Classroom furniture Does the buying process differ for any of
these products? If so how?

Visit the following Web site:us.acnielsen.com/pubs/2005_q4_ci_privatelabel.shtml. It contains a

recent report on private label pricing. Review the report and answer the following questions: a.
Which region of the world has the highest concentration of private labels? b. In which region of
the world are private label sa
Prices at amusement parks are expected to rise because operators such as Disney and Universal
Studios are adding new rides and coping with the rising cost of fuel. List as many things as you
can think of that parks like these offer patrons in return for their money. Which of these do you
think are directly reflected in

Why is it important for a firm to manage the relationships along its supply chain?

See Full Questions And Answers at solutionrank.com

Distinguish between fair-trade and unfair-trade laws. As a consumer, would you support either
fair-trade or unfair-trade laws? Would your answer change if you were the owner of a small
store?

What are allowances? How do they work?

While one can probably find a better price for the components online, what is the value of
choosing John Miggins for your solar or wind system?

Distinguish between primary and secondary data. When should researchers collect each type of
data?

See Full Questions And Answers at solutionrank.com

Why is return on investment such an important factor for the consumer choosing an alternative
energy system?

Describe the benefits of relationship marketing. How does database technology help firms build
relationships with customers?

Describe at least four qualities of a successful CRM system.

What buying center participant is a marketer likely to encounter first? In the buying center, who
has the formal authority to make a purchase?

See Full Questions And Answers at solutionrank.com

Search Google news (news.google.com) and review several recent articles on the Treaty of
Lisbon. Prepare a brief report on the treaty and its current status. What impact will the treaty
have on marketers doing business in the European Union?

In small teams, categorize each of the following as a specific type of pricing objective. Suggest a
company or product likely to use each pricing objective. Compare your findings. a. 5 percent
increase in profits over the previous year b. Prices no more than 6 percent higher than prices
quoted by independent dealers c.
Foreign investment continues to grow in the United States. Do you think this is a positive trend
for U.S. businesses and consumers? Why or why not?

Give an example of cobranding and comarketing.

See Full Questions And Answers at solutionrank.com

With a classmate, choose a product and come up with a slogan representing each of the six
positioning approaches for the product.

WebTech Development of Nashville, Tennessee, is considering the possible introduction of a

new product proposed by its research and development staff. The firm's marketing director
estimates the product can be marketed at a price of $70. Total fixed cost is $278,000, and
average variable cost is calculated at $48. a. W

Visit the Web site of a U.S. company with an extensive presence internationally. Examples
include The Coca-Cola Company and Johnson & Johnson. Note two or three differences in
product strategies you found between the company's products sold domestically and those sold
internationally. Next, visit the Web site of Swiss

Ajax Motor Company recently announced that it will rely less on high-volume strategies such as
discounts and rebates to improve its profitability. Another strategy it will employ is to sell fewer
cars to rental fleets, which eventually return the cars to Ajax for sale at low auction prices. How
do these types of sales

See Full Questions And Answers at solutionrank.com

Visit the Web site of Canon (usa.canon.com). How does Canon segment its markets, such as
geographic, product related, demographic, or brand loyalty? Does the firm use more than one
method of product segmentation? Why or why not?

Distinguish among surveys, experiments, and observational methods of primary data collection.
Cite examples of each method.

What is the fastest-growing racial/ethnic minority group in the United States? What types of
things do marketers need to know about this group to market successfully to these consumers?

What is the role of an advertising agency?

See Full Questions And Answers at solutionrank.com

Think back to any good or bad publicity you have heard about a company or its products
recently. If it was good publicity, how was it generated and what media were used? If it was bad
publicity, where did you find out about it and how did the firm try to control or eliminate the
situation?
Differentiate between direct selling and direct-response retailing. Cite examples of both.

Describe the different ways companies can organize to develop new products.

What is the most important factor in a strategic alliance?

See Full Questions And Answers at solutionrank.com

Dozens of products have been around for years. The organizations behind these products are
adept at managing and extending their product lifecycles. One example is products made from
soy. Visit the United Soybean Board's Web site (www.soynewuses.org) and prepare a report on
how this organization has successfully extend

Assume a product sells for $100 per ton and Pittsburgh is the basing-point city for calculating
transportation charges. Shipping from Pittsburgh to a potential customer in Cincinnati costs $10
per ton. The actual shipping costs of suppliers in three other cities are $8 per ton for Supplier A,
$11 per ton for Supplier B

Auto dealerships often have exclusive distribution rights in their local markets. How might this
affect the purchase choices consumers make? What problems might a dealership encounter with
this type of distribution?

What is retail convergence?

See Full Questions And Answers at solutionrank.com

Research and then classify each of the following retailers: a. Petite Sophisticate b. Limited c.
Ethan Allen Galleries d. Dillard's

What steps do marketers take to make the introductory stage of the product lifecycle successful
enough to reach the growth stage? What are some of the challenges they face?

Many companies use sponsorships as an important component of their integrated marketing

communication strategy. One such company is Bank of America. Go to the Web site listed here
(bankofamerica.com/sponsorships/) and prepare a report on how Bank of America uses
sponsorships as part of its IMC strategy.

How can firms use marketing public relations (MPR) to their advantage?

See Full Questions And Answers at solutionrank.com

What is category management and what role does it play in the success of a product line?

What is the difference between loss-leader and leader pricing? When do retailers use each?
Describe briefly how L.L.Bean achieved each of the objectives for developing a product line.
Why do you think the firm has been successful?

What are the three primary objectives of advertising? Give an example of when each one might
be used.

See Full Questions And Answers at solutionrank.com

Computer Company Hewlett-Packard recently embarked on a product diversification strategy.

Go to the firm's Web site (www.hp.com). Click on "Company Information" and then
"Newsroom" to obtain details about the firm's product diversification strategy. What are its key
elements? What is the rationale for it?

What are the five components associated with the cost of achieving customer service standards in
a physical distribution system?

On your own or with a classmate, identify, draw, and explain a reverse channel with which you
are familiar. What purpose does this reverse channel serve to businesses? To the community? To
consumers?

Differentiate between advertising and product placement. Which do you think is more effective,
and why?

See Full Questions And Answers at solutionrank.com

Identify and briefly describe the different types of brands.

List the six steps in the new-product development process.

Choose one of the following products and explain how it blurs the distinction between goods and
services. a. Hip replacement surgery b. Breakfast at a popular restaurant c. Purchase and
installation of new carpet d. Live concert e. Custom-made suit

Talbots made its name as a retailer of classic sportswear for women, but it has recently expanded
its target market to include men and children. Men, however, typically don't enjoy shopping for
clothes, and children shop with their parents. Visit www.talbots.com and assess how well
Talbots is reaching men through its W

See Full Questions And Answers at solutionrank.com

Why is the recruitment and selection stage of the hiring process one of a sales manager's greatest
challenges?

Identify and define the two broad categories of advertising. Give an example of each.

What are the benefits of owning a franchise? What are the drawbacks?
In the United States, the Patent and Trademark Office is responsible for the registration of
trademarks. Visit the USPTO Web site (www.uspto.gov). Click on "Trademarks" and answer the
following questions: a. Do trademarks, copyrights, and patents protect the same things? b. What
is a "standard character" drawing? c. Wh

See Full Questions And Answers at solutionrank.com

Describe the three levels of distribution intensity. Give an example of a product in each level.

Describe the five stages of communication.

What are unsought products? Give an example of an unsought product, and explain how it might
be marketed.

Arm & Hammer extended the lifecycle of its baking soda by coming up with new uses for the
product. Think of a product whose lifecycle you believe could be extended by finding new uses.
Describe the product and your ideas for new uses.

See Full Questions And Answers at solutionrank.com

How do firms use benchmarking?

What are the benefits and drawbacks of publicity?

What is the role of integrated marketing communications (IMC) in a firm's overall marketing
strategy? When executed well, what are its benefits?

What is a line extension? Describe how one of the following might create a line extension: a.
Bounty paper towels b. Post Shredded Wheat c. Celestial Seasonings tea d. Tide laundry
detergent

See Full Questions And Answers at solutionrank.com

Why is brand equity so important to companies?

Suppose you are hired as a salesperson for a firm that offers prep courses for standardized tests.
Where might you find some leads?

After a home, a car is likely the biggest purchase most consumers ever make. And arguably, no
other big-ticket item is as dependent on the quality of personal selling to close the deal. For
decades, U.S. automakers clearly dominated the auto industry, but that picture began to change
in the 1970s, when the Japanese beg

Visit the Advertising Age Web site to access information on advertising during the 20th century
(adage.com/century). Answer the following questions: a. Who were the top ten advertisers? b.
What were the top five advertising campaigns? What were the top three advertising jingles?
What were the top two advertising slogan

See Full Questions And Answers at solutionrank.com

For each of the following goods and services, indicate which direct marketing channel or
channels you think would be best: a. Vacation time share b. Denim jacket c. Custom-made
bracelet d. Lawn care service e. Magazine subscription

Describe each of the four major advertising strategies.

What are some of the advantages and disadvantages of using a celebrity spokesperson to promote
a good or service? How might this affect a firm's public relations efforts?

What role does packaging play in helping create brand loyalty and brand equity?

See Full Questions And Answers at solutionrank.com

What important features distinguish shopping products from one another?

What are the three stages marketers use to measure brand loyalty?

Find some examples of retailers that demonstrate the concept of the wheel of retailing. Explain
the stages they went through and are in currently.

Identify the different types of emotional appeals in advertising. What are the benefits and pitfalls
of each?

See Full Questions And Answers at solutionrank.com

Which of the four sales channels is each of the following salespeople most likely to use? a.
Salesperson in an American Eagle Outfitters store b. Coldwell Banker real