Guidelines: Answer all the 15 questions. Each question carries 2 Marks. Each question may be answered in approximately 100 to 150 words. Support your answers with appropriate examples, wherever possible.

(1) What value does the consumer receive by purchasing the following products or services? (a) Nestles Instant Coffee, (b) Adidas running shoes?

(2) What is meant by SWOT analysis? Complete a SWOT analysis for Subway restaurants.

(3) How has social media like Facebook, YouTube, etc., changed the way that companies market? How has social media changed how you shop and buy?

(4) Assume you were starting a new business. In terms of competition, how would you differentiate your business from your competition?

(5) Historically, a couple of large firms dominated the Canadian brewing industry (Labatt and Molson). But now, these companies face competition from many regional brands and micro-breweries. In terms of competition, how would you explain this change? What should large firms like Labatt and Molson do to face new competitive challenges?

(6) What is a Free Trade Zone? How do you think the NAFTA (North American Free Trade Agreement) is different from the European Union?

(7) Coca-Cola is sold worldwide. In some countries, Coca-Cola owns the bottling facilities; in others, it has signed contracts with licensees or relies on joint ventures. When selecting a licensee in each country, what factors should Coca-Cola consider?

(8) Free Trade and Globalization promote the International Marketing activities of Canadian businesses. At the same time, Outsourcing has negatively affected several industries in Canada. Discuss Outsourcing vs. Inshoring with an appropriate example.

(9) Why is Product Adaptation sometimes necessary while entering into a foreign market?

(10) Suppose research at Panasonic reveals that prospective buyers are anxious about buying expensive high-definition television sets. What strategies might you recommend to the company to reduce consumer anxiety?

(11) The greater the perceived risk in a purchase situation, the more likely that cognitive dissonance will result. Does this statement have any basis given the discussion in the text? Why?

(12) How does Culture & Values and Subculture influence the Consumer Decision-Making Process? Discuss with an example that you have seen or experienced?

(13) Effective marketing is of increasing importance in todays competitive environment. How can firms more effectively market to organizational customers or business customers?

Questions (14) and (15) are based on the following case scenario

McDonald's Seniors Restaurant

Lisa Aham is manager of a McDonald's restaurant in a city with many seniors. She has noticed that some senior citizens have become not just regular patronsbut patrons who come for breakfast and stay on until about 3 p.m. Many of these older customers were attracted initially by a monthly breakfast special for people aged 55 and older. The meal costs $1.99 and refills of coffee are free. Every fourth Monday, between 100 and 150 seniors jam Lisa's McDonald's for the special offer. But now almost as many of them are coming every dayturning the fast-food restaurant into a meeting place. They sit for hours with a cup of coffee, chatting with friends. On most days, as many as 100 will stay from one to four hours.

Lisa's employees have been very friendly to the seniors, calling them by their first names and visiting with them each day. In fact, Lisa's McDonald's is a happy placewith her employees developing close relationships with the seniors. Some employees have even visited customers who have been hospitalized. You know, Lisa says, I really get attached to the customers. They're like my family. I really care about these people. They are all friends, and it is part of McDonald's corporate philosophy (as reflected in its website, www.mcdonalds.com) to be friendly with its customers and to give back to the communities it serves.

These older customers are an orderly group and very friendly to anyone who comes in. Further, they are neater than most customers and carefully clean up their tables before they leave. Nevertheless, Lisa is beginning to wonder if anything should be done about her growing non-fast-food clientele. There's no crowding problem yet, during the time when the seniors like to come. But if the size of the senior citizen group continues to grow, crowding could become a problem. Further, Lisa is concerned that her restaurant might come to be known as an old people's restaurantwhich might discourage some younger customers. And if customers felt the restaurant was crowded, some might feel that they wouldn't get fast service. On the other hand, a place that seems busy might be seen as a good place to go and a friendly place.

Lisa also worries about the image she is projecting. McDonald's is a fast-food restaurant (there are over 32,000 of them serving over 60 million people in over 100 countries every day), and normally customers are expected to eat and run. Will allowing people to stay and visit change the whole concept? In the extreme, Lisa's McDonald's might become more like a European-style restaurant where the customers are never rushed and feel very comfortable about lingering over coffee for an hour or two! Lisa knows that the amount her senior customers spend is similar to the average customer's purchasebut the seniors do use the facilities for a much longer time. However, most of the older customers leave McDonald's by 11:30, before the noon crowd comes in.

Lisa is also concerned about another possibility. If catering to seniors is OK, then should she do even more with this age group? In particular, she is considering offering bingo games during the slow morning hours9 a.m. to 11 a.m. Bingo is popular with some seniors, and this could be a new revenue sourcebeyond the extra food and drink purchases that probably would result. She figures she could charge $5 per person for the two-hour period and run it with two underutilized employees. The prizes would be coupons for purchases at her store (to keep it legal) and would amount to about two-thirds of the bingo receipts (at retail prices). The party room area of her McDonald's would be perfect for this use and could hold up to 150 persons.

(14) Evaluate Lisa Aham's current strategy regarding senior citizens. Does this strategy improve this McDonald's image?

(15) What should she do about the senior citizen marketthat is, should she encourage, ignore, or discourage her seniors? What should she do about the bingo idea? Explain.