Gary and Ila Fedderson owned and operated Whiskey Flow, a restaurant and bowling alley located in Howard, South Dakota. After operating the business for some time, the Feddersons purchased a $1 million insurance policy from Columbia Insurance Group (Columbia) that covered damages to the business caused by fire. The policy included a “Concealment or Fraud Condition” that voided the insurance policy if “any insured” intentionally concealed or misrepresented a material fact or committed fraud or false swearing in connection with the insurance contract. One month after taking out the insurance, the Whiskey Flow was destroyed by fire. Gary and Ila submitted a $1 million claim to Columbia. In their proof of loss statement, Gary and Ila swore that an “unknown party started the fire.” After investigation, Gary was convicted of the crimes of conspiracy to commit arson and insurance fraud. Ila was not involved in the arson and did not have knowledge of Gary’s involvement in the arson. Ila sued Columbia to recover 50 percent of the insurance proceeds as an “innocent insured.” Can Ila collect half of the insurance proceeds? Did Gary act ethically in this case? Did Ila act unethically in trying to recover half of the insurance proceeds? Fedderson v. Columbia Insurance group, 824 N.W.2d 793, 2012 S.D. Lexis 164 (2012)
> This chapter mentions that psychographic analyses can be used by politicians to market themselves. What are some of the marketing strategies and techniques used by politicians in recent elections? Did the candidates design special appeals to attract the
> Have each student characterize three different people that they associate with (friends, coworkers, classmates, family members, etc.) based on traits (trait theory). Each of the three should be distinct. How could an advertiser use this information?
> Have each student extensively describe a consumption situation that reflects each of the following: need for affiliation, need for power, and need for uniqueness.
> Have students think of examples of products or services that each of them has purchased that fit the three types of motivational conflicts found in Figure 4.1.
> What is the relationship between an opinion leader and an opinion seeker?
> Is there such a thing as a generalized opinion leader? Why or why not?
> What is an opinion leader? Give three reasons why they are powerful influences on consumers’
> What is viral marketing? Give an example of this strategy.
> Some retailers work hard to cultivate a certain look or image, and they may even choose employees who fit this look. Abercrombie & Fitch, for example, seems to link itself to a clean-cut, all-American image. At one point, a lawsuit claimed that Abercromb
> Describe some ways in which marketers are using the Internet to encourage positive WOM.
> How does the Principle of Least Interest relate to your success in a romantic relationship?
> What is brand community, and why is it of interest to marketers?
> List three types of social power, and give an example of each.
> What is the difference between recycling and lateral cycling?
> How do business models in the sharing economy differ from traditional purchase processes?
> What is the difference between unplanned buying and impulse buying?
> List three separate motivations for shopping, give an example of each.
> Describe the difference between a superordinate category, a basic level category, and a subordinate category.
> “Marketers need to be extra sure their product works as promised when the first introduce it.” How does this statement relate to what we know about consumers’ evoked sets?
> In his book Blink: The Power of Thinking without Thinking, author Malcolm Gladwell argues that hallowed marketing research techniques like focus groups aren’t effective because we usually react to products quickly and without much conscious thought so it
> What is prospect theory? Does it support the argument that people are rational decision makers?
> What is purchase momentum, and how does it relate (or not) to the model of rational decision-making?
> Describe a heuristic a couple might use when they make a decision, and provide an example of it.
> What is a kin-network system?
> What are some differences between “traditional” and “modern” couples in terms of how they allocate household responsibilities?
> What is the difference between an autonomic and syncretic decision?
> List three roles employees play in the organizational decision-making process.
> What are some of the ways in which organizational decisions differ within each class?
> Summarize the buyclass model of purchasing. How do decisions differ within each class?
> What is a prediction market?
> Consumers who participate in the sharing economy seem willing to interact with total strangers. Despite safety and privacy concerns, what is the long-term outlook for this change in the way we think about interacting with people whom we don’t know? How c
> What are some factors that influence how an organizational buyer evaluates a purchase decision?
> What is the difference between a non-compensatory and a compensatory decision rule? Give one example of each.
> Describe the difference between inertia and brand loyalty.
> List three product attributes that consumers can use as product quality signals and provide an example of each.
> Why can “mindless” decision making actually be more efficient than devoting a lot of thought to what we buy?
> What is consumer involvement? How does this concept relate to motivation?
> What is mood congruency and how to advertisers use it?
> What is the difference between a mood and an emotion?
> List three types of perceived risk and give an example of each?
> Name the levels in Maslow’s Hierarchy and give an example of a marketing appeal that is focused at each level.
> The clothing chain H&M features computer-generated models on its Web site. The company drew criticism for presenting only picture-perfect people; for example, the Norwegian Broadcasting Corporation accused the chain of “creating unrealistic physical ide
> Go to www.victoriassecret.com. How does this famous website use enhancement of the self to attract consumers? Would you expect males to visit the site as well as females? How could the site make it easier for males to purchase from the site (remember, ma
> The Farmer’s Cooperative of Arkansas and Oklahoma (Co-Op) was an agricultural cooperative that had approximately 23,000 members. To raise money to support its general business operations, Co-Op sold promissory notes to investors that were payable on dema
> While Nigeria, an African nation, was in the midst of a boom period due to oil exports, it entered into $1 billion of contracts with companies in various countries to purchase huge quantities of Portland cement from those companies. Nigeria was going to
> Nagib Giha (husband) filed a complaint for divorce from Nelly Giha (wife) on the grounds of irreconcilable differences. On May 20, the parties reached an agreement for the disposition of their property which provided that they would divide equally the ne
> Homer and Edna Jones, husband and wife, executed a joint will that provided “We will and give to our survivor, whether it be Homer Jones or Edna Jones, all property and estate of which the first of us that dies may be seized and possessed. If we should b
> Milton Mende purchased the Star Midas Mining Co., Inc., a Nevada corporation, for $6,500. This corporation was a shell corporation with no assets. Mende changed the name of the corporation to American Equities Corporation (American Equities) and hired Be
> The archdiocese of Miami established a health and welfare plan to provide medical coverage for its employees. The archdiocese purchased a stop-loss insurance policy from Lloyd’s of London (Lloyd’s), which provided insurance against losses that exceeded t
> Middleton Tract consisted of approximately 560 acres of land located in the Santa Cruz Mountains in San Mateo County, California. The land, which had once been owned by William H. Middleton, had been subdivided into 80 parcels of various shapes and sizes
> Moe and Joe Rappaport (Tenants) leased space in a shopping mall owned by Bermuda Avenue Shopping Center Associates, L.P. (Landlord), to use as an indoor golf arcade. The lease was signed, and Tenants were given possession of the leased premises. Landlord
> Victor and Phyllis Garber acquired a piece of real property by warranty deed. The deed was recorded. The property consisted of 80 acres enclosed by a fence that had been in place for more than 50 years. The enclosed area was used to graze cattle and prod
> Darryl Kulwin was employed by Nova Stylings, Inc. (Nova), as a jewelry salesman. In that capacity, he traveled throughout the country, carrying with him jewelry owned and manufactured by Nova to show to prospective buyers. Kulwin was visiting Panoria Rus
> When Dr. Arthur M. Edwards died, leaving a will disposing of his property, he left the villa-type condominium in which he lived, its “contents,” and $10,000 to his stepson, Ronald W. Souders. Edwards left the residual of his estate to other named legatee
> Corn Products Refining Company (Corn Products) manufactured corn syrup, or glucose (a principal ingredient of low-priced candy), at 2 plants, one located in Chicago, Illinois, and the other in Kansas City, Missouri. Corn Products sold glucose at the same
> Metropolitan Edison Company owned and operated two nuclearfueled power plants at Three Mile Island near Harrisburg, Pennsylvania. Both power plants were licensed by the NRC after extensive proceedings and investigations, including the preparation of the
> Colgate-Palmolive Co. (Colgate) manufactured and sold a shaving cream called Rapid Shave. Colgate hired Ted Bates & Company (Bates), an advertising agency, to prepare television commercials designed to show that Rapid Shave could shave the toughest beard
> A statute of the state of Wisconsin forbids the practice of medicine without a license granted by the Examining Board (Board), a state administrative agency composed of practicing physicians. The statute specifically prohibits certain acts of professiona
> Kaiser Aluminum & Chemical Corporation entered into a collective bargaining agreement with the United Steelworkers of America, a union that represented employees at Kaiser’s plants. The agreement contained an affirmative-action program to increase the re
> McDonald’s Corporation operates the largest fast-food restaurant chain in the United States and the world. It produces famous foods such as the Big Mac hamburger, Chicken McNuggets, the Egg McMuffin, french fries, shakes, and other foods. A McDonald’s su
> Warner-Lambert Company has manufactured and distributed Listerine antiseptic mouthwash since 1879. Its formula has never changed. Since Listerine’s introduction, the company has represented the product as being beneficial in preventing and curing colds a
> Texas Gulf Sulphur Co. (TGS), a mining company, drilled an exploratory hole—Kidd 55—near Timmins, Ontario. Assay reports showed that the core from this drilling proved to be remarkably high in copper, zinc, and silver. TGS kept the discovery secret, camo
> Zapata Off-Shore Company (Zapata) was a Houston, Texas–based U.S. corporation that engaged in drilling oil wells throughout the world. Unterweser Reederei, GMBH (Unterweser), was a German corporation that provided ocean shipping and towing services. Zapa
> Banco Nacional de Costa Rica is a bank wholly owned by the government of Costa Rica. It is subject to the rules and regulations adopted by the minister of finance and the central bank of Costa Rica. The bank borrowed $40 million from a consortium of priv
> Prior to 1918, the Petrograd Metal Works, a Russian corporation, deposited a large sum of money with August Belmont, a private banker doing business in New York City under the name August Belmont & Co. (Belmont). In 1918, the Soviet government nationaliz
> To stabilize its currency, Argentina and its central bank, Banco Central (collectively, Argentina), issued bonds called Bonods. The bonds, which were sold to investors worldwide, provided for repayment in U.S. dollars through transfers on the London, Fra
> Ronald R. and Edith Johnston were married and had 3 sons ranging in age from 12 to 16 when the parties separated. Edith filed for divorce the same year. The Johnstons owned a primary residence worth $186,000, with no mortgage on it. Ronald was a successf
> At the time George Neville and Tina Neville were married, George was 31 years old and a practicing attorney and Tina was a 23-year-old medical student. After 7 years, Tina became a licensed physician. Soon after, George filed for divorce from Tina becaus
> Dr. Duncan R. Danforth, a 75-year-old man of substantial means, married 21-year-old Loretta Ollison. Immediately following the ceremony, the newlyweds went to a lawyer’s office, where Danforth executed a newly prepared will, naming Ollison a principal be
> Mr. and Mrs. Campbell were out in a small boat on Hyatt Lake near Ashland, Oregon. The boat capsized near the middle of the lake sometime in the afternoon. No one saw the capsizing or either of the Campbells in the water. The deputy sheriff was called to
> During his first marriage to Miriam Talbot, Robert Mirkil Talbot executed a will in multiple originals that bequeathed his entire estate to Miriam, or if she should predecease him, to his friend J. Barker Killgore. After his first wife’s death, Robert ma
> Martha Jansa executed a will naming her 2 sons as executors and leaving all her property to them. The will was properly signed and attested to by witnesses. Thereafter, Martha died. When Martha’s safe-deposit box at a bank was opened, the original of thi
> Ethel M. Ramchissel executed a will that made the following bequests: (1) one-half of the stock she owned in Pabst Brewing Company (Pabst) to Mary Lee Anderson, (2) the stock she owned in Houston Natural Gas Corporation (Houston Natural Gas) to Ethel B
> Texscan Corporation (Texscan) was a corporation located in Phoenix, Arizona. The company was audited by Coopers & Lybrand (Coopers), a national CPA firm that prepared audited financial statements for the company. The Lindner Fund, Inc., and the Lindner D
> Giant Stores Corporation (Giant) hired Touche Ross & Co. (Touche), a national CPA firm, to conduct audits of the company’s financial statements for 2 years. Touche gave an unqualified opinion for both years. Touche was unaware of any specific use of the
> Michael H. Clott was chairman and chief executive officer of First American Mortgage Company, Inc. (FAMCO), which originated loans and sold the loans to investors, including E. F. Hutton Mortgage Corp. (Hutton). FAMCO employed Ernst & Whinney, a national
> Brandon Apparel Group, Inc. (Brandon) made and sold clothing and licensed the making and selling of clothing in exchange for a percentage of the licensees’ sales revenues. Brandon began borrowing money from Johnson Bank and in 2 years owed the bank $10 m
> When Michael A. Jaffe, a child psychiatrist practicing in California, was accused of Medi-Cal fraud and theft, he requested that his malpractice insurer, Cranford Insurance Company (Cranford), provide his criminal defense. Cranford refused to defend Jaff
> Donald Barker, a wealthy Oregon resident, went to the law firm Winokur, Schoenberg, Maier, Hamerman & Knudson to have his estate planned. An attorney at the firm repeatedly told Barker that he could convey half of his $20-million estate to his wife tax f
> Antonio Munoz and Jacinto Segura won some money from 2 unidentified men in a craps game in a Los Angeles park. When Munoz and Segura left the park in Segura’s car, the 2 men followed them in another car. They chased Segura’s car for several miles and the
> Jowenna Surber owned a Mercedes-Benz automobile that she insured through an insurance broker, Mid-Century Insurance Company (Mid-Century). Mid-Century secured a policy for Surber with the Farmers Insurance Company (Farmers). Surber gave permission to her
> Richard Usher’s home was protected by a homeowners’ policy issued by National American Insurance Company of California. The policy included personal liability insurance. A provision in the policy read, “Personal liability and coverage do not apply to bod
> The defendants are approximately 80 tenants of a 300-unit luxury apartment building on the upper east side of Manhattan. The monthly rents in the all-glass-enclosed building, which won several architectural awards, were very high. The landlord brought a
> Title III of the Americans with Disabilities Act (ADA) requires that public accommodations must be “readily accessible to and usable by individuals with disabilities.” The U.S. Department of Justice (DOJ) is empowered to adopt regulations to enforce the
> Joseph and Helen Naab purchased a tract of land in a subdivision of Williamstown, West Virginia. At the time of purchase, there were both a house and a small concrete garage on the property. Evidence showed that the garage had been erected sometime prior
> W.E. and Jennie Hutton conveyed land they owned to the Trustees of Schools of District Number One of the Town of Allison, Illinois (School District), by warranty deed “to be used for school purpose only; otherwise to revert to Grantor.” The School Distri
> Burl Brunson purchased a parcel of real property in Newark, New Jersey. The deed for the property was properly recorded and indexed by the county recorder. Subsequently, Brunson borrowed $50,000 from The Howard Savings Bank, secured by a mortgage that wa
> Police officers of the city of Miami, Florida, responded to reports of a shooting at the apartment of Carlos Fuentes. Fuentes had been shot in the neck and shoulder, and shortly after the police arrived, he was removed to a hospital. In an ensuing search
> James D. Merritt leased a storage locker from Nationwide Warehouse Co., Ltd. (Nationwide), and agreed to pay a monthly fee to lease the locker. Merritt placed various items in the leased premises but never informed Nationwide as to the nature or quantity
> Victor Gruen was a successful architect. Victor purchased a painting titled Schloss Kammer am Attersee II by a noted Austrian modernist, Gustav Klimt, for $8,000. Four years after acquiring the painting, Victor wrote a letter to his son Michael, then an
> Sisters of Charity of the Incarnate Word, d.b.a. St. Elizabeth Hospital of Beaumont, operates a health and wellness center. Phil Meaux was a paying member of the health center. The rules of the center, which Meaux had been given, state, “The Health & Wel
> Alex Franks was a guest staying at a Comfort Inn in Searcy, Arkansas, while he was working on a highway project. Franks found a bundle of money in plain view in the left part of the left drawer in the dresser in his room. Franks notified the hotel manage
> Lipton Tea Co. (Lipton) was the second largest U.S. producer of herbal teas, controlling 32 percent of the national market. Lipton announced that it would acquire Celestial Seasonings, the largest U.S. producer of herbal teas, which controlled 52 percent
> Mercedes-Benz of North America (MBNA) was the exclusive franchiser of Mercedes-Benz dealerships in the United States. MBNA’s franchise agreements required each dealer to establish a customer service department for the repair of Mercedes-Benz automobiles
> Maricopa County Medical Society (Society) is a professional association that represents doctors of medicine, osteopathy, and podiatry in Maricopa County, Arizona. The society formed the Maricopa Foundation for Medical Care (Foundation), a nonprofit Arizo
> Law school students, after they graduate from law school, must take and pass a bar exam before they can become a lawyer in a state. Most law students take a preparatory bar exam course before they take the exam. Harcourt Brace Jovanovich Legal (HBJ) was
> Douglas Hoflin was the director of the Public Works Department for Ocean Shores, Washington. During a period of 7 years, the department purchased 3,500 gallons of paint for road maintenance. As painting jobs were finished, the 55-gallon drums that had co
> The Reserve Mining Company (Reserve) owned and operated a mine in Minnesota that was located on the shores of Lake Superior and produced hazardous waste. Reserve obtained a permit from the state of Minnesota to dump its wastes into Lake Superior. The per
> Leslie Salt Company owned a 153-acre tract of undeveloped land south of San Francisco. The property abutted the San Francisco National Wildlife Refuge and was approximately one-quarter mile from Newark Slough, a tidal arm of San Francisco Bay. Originally
> FBNH Enterprises, Inc. (FBNH), was a distributor of a product known as French Bronze Tablets. The purpose of the tablets was to allow a person to achieve an even tan without exposure to the sun. When ingested, the tablets imparted color to the skin throu
