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Answer any two (2) questions. If you submit three(3) the best 2 will count for grading purposes. Questions are of equal value (50 points each). . . In the latter circumstance equal contribution is assumed. While you may consult written materials you are not too discuss your answers with anyone other than your collaborator, if there is one. If you quote substantially from a source it should be cited! Submission of your exam attests to your acceptance of these conditions. Please submit your exam in a unified file, i.e. not a single question in a file. Include your name on the file itselfand entitle your submission as MAR 4804 YOURNAME FINAL. Best of luck! Q#1 Discuss how the Principles of Causation have aided you to successfully compete in the Marketplace simulation. Use the framework reproduced below. You need to show that you understand the principles and how such knowledge assisted your competitive effort. Illustrate your answer with at least two specific examples. Also include a brief discussion of “productivity”. Causation (Goal Oriented Activity) Basic requirements 1. Association between cause (C) and effect (E); 2. Time order of occurrence (C precedes E); 3. a) Elimination of alternative explanations b) Model the causal process. Complicating issues: i) Uncontrollable factors -natural variation -competitive response ii) Interaction effects (e.g. nature of a “sale”) iii) Lagged (delayed) effects iv) Non-linear response patterns v) Multiple effects vi) Impact of nature of target market or context Q#2: Pyramid Door: a) In the Pyramid Door case the market growth rate was approximately 2.4% per annum. Pyramid Door’s growth objective for the coming year is 36%. Obviously this is very ambitious! Carefully review the issues which impact how realistic this growth objective is. Include the following in your discussion i) Pyramid Door’s market share(s) (carefully define the market). Include the likelihood of a targeted competitive response in your discussion. ii) brand equity; iii) the potential transition of 27 independent distributors to exclusive distributors. Would you consider a position with Pyramid Door where your compensation was largely dependent on this sales objective being achieved? Discuss. What changes would you need to see to make the sales incentives attractive to you as a prospective employee? b) In evaluating Pyramid Door’s sales performance in the 2 distinct marketing (exclusive versus independent dealers) channels, which is more important – sales per market (i.e. 3 dealers per market in the case of the independent dealer channel) or sales per individual dealer? Carefully explain! NOTE: An exclusive dealer is the one and only Pyramid distributor in a geographic market. Such a dealer carries only the Pyramid brand so that there is no competition within a showroom. An independent dealer carries several brands (Pyramid plus 2 other brands). There are several such dealers (typically 3) in a geographic market. . Q#3 Marketing Ethics a) Discuss the distinctions between Deontological and Consequential ethical reasoning processes. Which philosophy do you find more compelling? Discuss! Include a marketing example. b) The exchange reproduced below is from an interview of then Senator (now President) Obama by Charles Gibson of ABC News. Mr. Gibson is pointing to data that indicates that the US Government has collected more tax revenue at lower rates while Mr. Obama wants higher rates as capital gains are an income source primarily accruing to high income (rich)taxpayers and he cites fairness as his criterion. GIBSON: And in each instance, when the rate dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down.So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected? OBAMA: Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness. i) Evaluate these 2 positions (“high” capital gains tax rates versus “low” capital gains tax rates) from both deontological and consequential ethical perspectives. ii) Which perspective do you find more persuasive? Explain your reasoning. c) President Obama has proposedthat the “minimum wage”be raised to $10.10 per hour. He argues that a full time job should provide sufficient income to ensure that an individual working for the minimum wage earns an income sufficient to exceed the poverty threshold. Opponents to raising the minimum wage cite the Congressional Budget Officestudy which estimates that the increase would result in the loss of 500,000 jobs as businesses reduced their staffing levels. i) Evaluate these 2 positions from both deontological and consequential ethical perspectives. ii) Which perspective do you find more persuasive? Explain your reasoning.

Answer any two (2) questions. If you submit three(3) the best 2 will count for grading purposes. Questions are of equal value (50 points each). . . In the latter circumstance equal contribution is assumed. While you may consult written materials you are not too discuss your answers with anyone other than your collaborator, if there is one. If you quote substantially from a source it should be cited! Submission of your exam attests to your acceptance of these conditions. Please submit your exam in a unified file, i.e. not a single question in a file. Include your name on the file itselfand entitle your submission as MAR 4804 YOURNAME FINAL. Best of luck!

Q#1

Discuss how the Principles of Causation have aided you to successfully compete in the Marketplace simulation. Use the framework reproduced below. You need to show that you understand the principles and how such knowledge assisted your competitive effort. Illustrate your answer with at least two specific examples. Also include a brief discussion of “productivity”.

Causation (Goal Oriented Activity)

 

Basic requirements

 

1. Association between cause (C) and effect (E);

 

2. Time order of occurrence (C precedes E);

 

3. a) Elimination of alternative explanations

b) Model the causal process.

 

Complicating issues:

 

i) Uncontrollable factors

-natural variation

-competitive response

 

ii) Interaction effects (e.g. nature of a “sale”)

 

iii) Lagged (delayed) effects

 

iv) Non-linear response patterns

 

v) Multiple effects

 

vi) Impact of nature of target market or context

Q#2: Pyramid Door:

a) In the Pyramid Door case the market growth rate was approximately 2.4% per annum. Pyramid Door’s growth objective for the coming year is 36%. Obviously this is very ambitious! Carefully review the issues which impact how realistic this growth objective is. Include the following in your discussion

 

i) Pyramid Door’s market share(s) (carefully define the market). Include the

likelihood of a targeted competitive response in your discussion.

 

ii) brand equity;

iii) the potential transition of 27 independent distributors to exclusive distributors.

Would you consider a position with Pyramid Door where your compensation was largely dependent on this sales objective being achieved? Discuss. What changes would you need to see to make the sales incentives attractive to you as a prospective employee?

b) In evaluating Pyramid Door’s sales performance in the 2 distinct marketing (exclusive versus independent dealers) channels, which is more important – sales per market (i.e. 3 dealers per market in the case of the independent dealer channel) or sales per individual dealer? Carefully explain!

NOTE:

An exclusive dealer is the one and only Pyramid distributor in a geographic market. Such a dealer carries only the Pyramid brand so that there is no competition within a showroom.

An independent dealer carries several brands (Pyramid plus 2 other brands). There are several such dealers (typically 3) in a geographic market.

.

Q#3 Marketing Ethics

 

a) Discuss the distinctions between Deontological and Consequential ethical reasoning processes. Which philosophy do you find more compelling? Discuss! Include a marketing example.

b) The exchange reproduced below is from an interview of then Senator (now President) Obama by Charles Gibson of ABC News. Mr. Gibson is pointing to data that indicates that the US Government has collected more tax revenue at lower rates while Mr. Obama wants higher rates as capital gains are an income source primarily accruing to high income (rich)taxpayers and he cites fairness as his criterion.

GIBSON: And in each instance, when the rate dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down.So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?

OBAMA: Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness.

i) Evaluate these 2 positions (“high” capital gains tax rates versus “low” capital gains tax rates) from both deontological and consequential ethical perspectives.

ii) Which perspective do you find more persuasive? Explain your reasoning.

c) President Obama has proposedthat the “minimum wage”be raised to $10.10 per hour. He argues that a full time job should provide sufficient income to ensure that an individual working for the minimum wage earns an income sufficient to exceed the poverty threshold. Opponents to raising the minimum wage cite the Congressional Budget Officestudy which estimates that the increase would result in the loss of 500,000 jobs as businesses reduced their staffing levels.

i) Evaluate these 2 positions from both deontological and consequential ethical perspectives.

ii) Which perspective do you find more persuasive? Explain your reasoning.

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