MT1--F08--A - University of Southern California Marshall...

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University of Southern California Marshall School of Business BUAD 307 Lars Perner, Ph.D., Instructor Marketing Fundamentals Fall, 2008 Name: __________________________ Signature: _______________________ Exam Form: A Exam serial number: __________ MIDTERM I Please: Write your name on this exam. Bubble in name and other information— including your exam version—on the Scantron sheet provided. Mark all your multiple choice answers on the Scantron form. Have fun! NO TALKING TO OTHER STUDENTS AT ANY TIME ABOUT ANY TOPIC. ELECTRONIC DICTIONARIES BASEBALL CAPS (UNLESS WORN FOR RELIGIOUS REASONS) TRANSPARENT WATER BOTTLES. IF YOU HAVE A PRINT DICTIONARY, YOU MUST HAVE THIS MARKED AND APPROVED BY THE INSTRUCTOR OR A PROCTOR BEFORE THE EXAM BEGINS. You may ask the instructor or proctor to clarify a question. We will do the best we can to clarify questions without giving the answer away. This is not a test of general vocabulary. Feel free to ask about the meaning of non-marketing terms. Have fun! Part I: Multiple Choice (2 points each for a total of 20*2=40 or 80% of the exam). Suggested time allocation: 2 minutes per question for a total of 40 minutes.)
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For each question below, please choose the best answer. Please mark your answers on the Scantron sheet. There will be no credit for multiple-choice answers written on the exam. Please keep in mind that if an answer seems too absurd to be true, it probably is! 1. Badley Bruin has pioneered the industry of psycho tourism . His travel agency arranges for his clients to hunt endangered species, blow up historical buildings, counterfeit the local currency, commit adultery, spit on senior citizens, and teach local children profanity during their travels. Recently, Badley has heard about the idea of “sustainability” and is getting worried that his socially irresponsible business practices may lead him to lose profits over time. If Badley had studied the research (assuming he could understand it), he would know that: a. It is virtually certain that he will go out of business in the near future. b. Studies so far have not found a strong direct correlation between earnings of firms and their level of social responsibility, suggesting that any relationship between the two is likely to be more complex. c. Badley is likely to make extremely high profits in the future since most people today are getting tired of political correctness and long to rebel against society. d. The trend toward “component lifestyles” will most likely undermine Badley’s model. e. Because Badley focuses on a very small part of the market, he is unlikely to be profitable. 2. Diversified Holdings, Inc., consists of the following business units: Unit (industry) Mega Corp’s market share Market growth rate Baby clothes High Low Traditional Designs (home furniture) High Low MP3 players Low High Killer Fashions (stylish clothing for serial killers) High High HipHopOnline (online sales of hip hop music downloads)
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MT1--F08--A - University of Southern California Marshall...

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