What is the FLC, and why is it important to marketers?
> Acquiring firm stockholders seem to benefit very little from takeovers. Why is this finding a puzzle? What are some of the reasons offered in explanation?
> In the chapter, we presented an example where you have lost $78 and are given the opportunity to make a wager in which you have an 80 percent chance that your loss will increase to $100 and a 20 percent chance that your loss will decrease to $0. Using th
> The following material represents the cover page and summary of the prospectus for the initial public offering of the Pest Investigation Control Corporation (PICC), which is going public tomorrow with a firm commitment initial public offering managed by
> In February 2017, Air Lease Corporation (ALC) announced a deal to lease five new Boeing 787-9 passenger aircraft to China Southern Airlines. ALC had the aircraft on purchase order from Boeing and planned to deliver three of the planes to China Southern i
> How could overconfidence affect the financial manager of the firm and the firm’s shareholders?
> Define each of the following terms: a. Greenmail b. White knight c. Golden parachute d. Crown jewels e. Shark repellent f. Corporate raider g. Poison pill h. Tender offer i. Leveraged buyout (LBO)
> For initial public offerings of common stock, 2017 was a slow year, with about $24.53 billion raised by the process. Relatively few of the 108 firms involved paid cash dividends. Why do you think that most chose not to pay cash dividends?
> You have been at your job with S&S Air for a week now and have decided you need to sign up for the company’s 401(k) plan. Even after your discussion with Audrey Sanborn, the Bledsoe Financial Services representative, you are still unsure as to which inve
> In 2009 and 2010, investment banks were under fire for interest rate swaps sold to municipalities and nonprofits. For example, California’s water resource authority paid about $305 million, North Carolina paid about $60 million, and Harvard University pa
> With some insurance policies, the value of the asset to be replaced is the current market value. For example, if you bought a couch five years ago for $1,000, and the current value of the couch is $300, you would only get $300 if the couch were destroyed
> You are at work when a co-worker excitedly comes to your desk and shows you the scenario analysis that he has just completed for a potential new project. All three scenarios show a positive NPV. He states, “We have to take this project!” What is your ini
> What are the difficulties in using the PE ratio to value stock?
> In the chapter, we mentioned that many companies have been under pressure to declassify their boards of directors. Why would investors want a board to be declassified? What are the advantages of a classified board?
> In the chapter, we gave several examples of so-called payday loans. As you saw, the interest rates on these loans can be extremely high and are even called predatory by some. Do you think such high interest loans are ethical? Why or why not?
> In 2016, automobile manufacturer BMW completed its $1 billion investment to increase production at its South Carolina plant by 50 percent. BMW apparently felt that it would be better able to compete and create value with U.S-based facilities. Other compa
> For each of the following scenarios, discuss whether profit opportunities exist from trading in the stock of the firm under the conditions that (1) the market is not weak form efficient, (2) the market is weak form but not semi-strong form efficient, (
> In 2014, Japanese liquor company Suntory Holdings Ltd. acquired U.S. bourbon maker Beam Inc., for $14 billion. Is this a horizontal or vertical acquisition? How do you suppose Beam’s nationality affected Suntory’s decision?
> Why might a person’s social class not change when he or she earns more money?
> What are some industries that stand to benefit most from the increasing affluence and vitality of the senior market?
> What is income inequality, and why is it a problem?
> What is conspicuous consumption? Give a current example.
> What is an example of a meme?
> How do you differentiate between “old money” versus “nouveau riche” consumers?
> What is a taste culture?
> Give an example of a marketer who uses the principle of binary opposition.
> Define a cultural gatekeeper, and give three examples.
> What is deethnicization? Give an example.
> What is a ritual? Describe three kinds of rituals and provide an example of each.
> What one variable is the best indicator of social class? What are some other important indicators?
> Go to www.seventeen.com/cosmogirl and www.cosmopolitan.com. How are these two sites different? What are their two target markets? What messages and values are being transmitted by the two websites? How can age and gender be combined by marketers to ensur
> Who are acculturation agents? Give two examples.
> What is the difference between a high-context and a low-context culture? What is an example of this difference?
> Go to www.alloy.com and www.teensplatform.com. These are portals geared toward teens. How do these sites differ from Yahoo or Google for information search, ecommerce, and the presentation of other information?
> Why is it difficult to identify consumers in terms of their ethnic subculture membership?
> Define discretionary income.
> Go to www.burberry.com. How does this prestige fashion label use social class and status to sell its products? Comment on their approach. Does this approach make you want to buy such products? Explain.
> Have groups find good and bad examples of advertising targeted toward “seasoned citizens.” To what extent do these ads stereotype the elderly? Do you think that the elderly would like or resent the implications? Are there any elements in these ads that m
> Assign student groups to visit two local supermarkets to find out if either has segmented their market based on the subculture or ethnic background of their customers. How many subcultures does each supermarket recognize? Have the students talk to the st
> Who are innovators? Early adopters? Laggards?
> What is a cultural formula? Give an example.
> Describe the difference between arts and crafts.
> Ask a student to bring in an ad in which the brand being marketed was at one time a status symbol, but fell out of fashion for a time (e.g., Cadillac, Parker Pen, Izod-Lacoste, etc.). Have the student discuss whether the ad still attempts to create that
> What is culture? List three dimensions social scientists used to describe a culture and give an example of each.
> Why are Asian Americans an attractive market segment? Why can they be difficult for marketers to reach?
> Describe the processes involved when a person assimilates into a new host culture.
> What is acculturation? How does it differ from enculturation?
> Why are Hispanic American consumers attractive to marketers?
> What are tweens, and why are so many marketers interested in them?
> What is an age cohort, and why is it of interest to marketers?
> What is a nuclear family, and how is it different from an extended family?
> Describe what we men by the term mass class and summarize what causes this phenomenon.
> Go to the following: www.bet.com, www.jetmag.com, www.ebony.com, and www.vibe.com. What do these African American interest websites have in common? How do they use desire for ethnicity to their advantage? Would members of other races be attracted to thes
> What is a current example of parody display?
> Describe the difference between a restricted and an elaborated code. Give an example of each.
> Define social mobility and describe the different forms it takes.
> What is social class? Is it different from income and if so how?
> What is a pecking order?
> How does consumer confidence influence consumer behavior?
> What is a subculture?
> How have women contributed to the overall rise in income in our society?
> Describe a culture production system and list its three components.
> What is collective selection? Give an example.
> Go to www.catholic.org, www.lds.org, www.scientology.org, and www.baptist.org. Each of these sites expresses thoughts about religion and religious freedom. What techniques do the sites use to stimulate their audiences to follow their messages and commit
> How is a collection sacred? What is the difference between collecting and hoarding?
> What is the difference between sacred and profane consumption? Provide one example of each.
> List the three stages of a rite of passage ritual.
> A myth is a special kind of story. What makes it special? What is an example of a modern myth?
> What is the difference between a fad, a fashion, and a classic fashion life cycle?
> What is the trickle-down effect? List some reasons why it is no longer as valid as it used to be.
> Summarize some of the major approaches we can use to understand fashion from the perspectives of psychologists, economists, and sociologists.
> What is the difference among the terms fashion, a fashion, and in fashion?
> Is it practical to assume that people age 55 and older constitute one large consumer market? How can marketers segment this age subculture? What are some important variables to keep in mind when we tailor marketing messages to this age group?
> What are some of the positives and negatives of targeting college students? Identify some specific marketing strategies that you feel have been either successful or unsuccessful at appealing to this segment. What characteristics distinguish the successes
> Go to www.margaritaville.com, www.fblegacy.com, and www.anime.com. What techniques learned in the chapter is used by these websites to attract their audiences? What evidence of ethnicity do you observe? Is there anything “cultish” about the websites? If
> Religious symbolism appears in advertising, even though some people object to this practice. For example, a French Volkswagen ad for the relaunch of the Golf model showed a modern version of the Last Supper with the tag line, “Let us rejoice, my friends,
> When they identify and target newly divorced couples, do you think marketers exploit these couples’ situations? Are there instances in which you think marketers may actually be helpful to them? Support your answers with examples.
> Discuss the pros and cons of the voluntarily childless movement.
> Research suggest that social class influences how much compassion people show to others who need help. For example, one study reported that luxury car drivers were more likely to cut off other motorists instead of waiting for their turn at the intersecti
> Thorstein Veblen argued that men used women as “trophy wives” to display their wealth. Is this argument still valid today?
> Describe the progressive learning model and discuss why this perspective is important when marketing to subcultures.
> How do you assign people to social classes, or do you at all? What consumption cues do you use (e.g., clothing, speech, cars, etc.) to determine social standing?
> What consumption differences might you expect to observe between families characterized as underprivileged versus those whose income is average for its social class?
> What are some of the obstacles to measuring social class in today’s society? Discuss some ways to get around these obstacles.
> Sears, JC Penney, and Walmart tried hard in recent years to upgrade their images and appeal to higher class consumers. How successful have these efforts been? Do you believe this strategy is wise?
> Go to www.maxlang.com. How much would you pay for a belt for casual or business wear? How much does Max Lang charge? Is Max Lang selling belts or status? How can the Max Lang website overcome problems such as sizing and the desire to personally see prest
> Should members of a religious group adapt marketing techniques that manufacturers customarily use to increase market share for their secular products? Why or why not?
> Geodemographic techniques assume that people who live in the same neighborhood have other things in common as well. Why do they make this assumption, and how accurate is it?
> How do religious subcultures affect consumption decisions?
> What roles do status symbols play in purchase decisions?
> How are Gen Yers different from their older brothers and sisters?
> What is cultural capital, and why is enrolling in an etiquette class a way to accumulate it?
> Ask students to use a product example (i.e., food products, automobiles) to illustrate how the marketer might promote to youths to take advantage of the influence they exert on family purchase decisions.
> What are boomerang kids?
> How does the worldview of blue-collar and white-collar consumers tend to differ?
> What are some of the problems we encounter when we try to measure social class?
> This material can be used to illustrate how reference groups also have status symbols. 1. Using the “4A’s” framework in Figure 12.1, analyze the considerations that went into the development of the Gillette Guard razor for the Indian market? 2. Are comp
> Charles Bradley is a Finance student who loves to play the stock market in his spare time. He likes the thrill of rapid price movements and he knows that if he can catch the right price to buy and sell he will make lot of money. Charles has a strong inte
> Given the situations below, (a). Discuss with reasons, whether they will fall into the category of Applied or Basic research, and (b). For scenario 1 explain with reasons, who will conduct the research. Scenario 1: Companies are very interested in acqui
> What is epistemology and why is it important to know about different perspectives on research and how it should be done?
> Academic researchers usually develop more complex and elaborate models than applied researchers. Discuss this statement.
