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Unformatted text preview: ing inflames nonsmokers and claims the lives of more than 400,000 smokers each year, so
the electronic cigarette is a welcomed alternative. Electronic cigarettes, called e-cigarettes, are
battery-powered devices that emit a vapor from nicotine, flavorings, and other chemicals. It looks
like a cigarette and allows smokers to inhale the nicotine vapor in places where smoking is not
allowed. The product has been touted as a means to quit smoking as well. However, critics,
especially the Food and Drug Administration (FDA), claim that “vaping” poses risks. In fact, the
FDA claims its tests revealed a toxic chemical that is found in antifreeze as well as other
carcinogens. The FDA blocked a shipment of the product from China and banned the sale of this
product in the United States. In addition to the safety issue, the FDA is concerned that children
might be attracted to this product because it comes in flavors other than traditional menthol, such
as bubble gum, chocolate, and strawberry. The FDA wants this product to go through the same
rigorous testing that drugs must go through before being marketed. However, the FDA’s authority
over this product is questioned. While Congress has recently given the FDA authority over
tobacco products, this is not a tobacco product and the Electronic Cigarette Association is fighting
77. Refer to E-cigarettes. E-cigarette manufacturers claim they are not trying to sell this product to
children. Rather, they are offering an alternative to combustible tobacco for committed smokers.
These smokers comprise the manufacturers’:
mass market ANS: A
A target market is a defined group that managers feel is most likely to buy a firm’s product.
KEY: CB&E Model Customer OBJ: 04-1 TOP: AACSB Reflective MSC: BLOOMS Application 78. Refer to E-cigarettes. In 1964, 42 percent of Americans smoked, but now that rate has dropped
below 20 percent. Which environmental factor has had the greatest impact on this trend?
Social factors include our attitudes, values, and lifestyles. Many of the smoking bans have
resulted from social pressure to limit smoking.
KEY: CB&E Model Strategy OBJ: 04-2 TOP: AACSB Reflective MSC: BLOOMS Application 79. Refer to E-cigarettes. Marketers of the e-cigarette claim that they are not marketing the product to
children, particularly because a starter kit costs over $100. Which economic factor are the
marketers claiming will likely keep this product out of the hands of children?
The purchaser of this product must have a large enough income to purchase this relatively
KEY: CB&E Model Customer OBJ: 04-5 TOP: AACSB Reflective MSC: BLOOMS Application 80. Refer to E-ciga...
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This document was uploaded on 09/29/2013.
- Fall '13