Concept explainers
Case summary:
In the year 2015, September, Company V was in the middle of firestorm. Company V is a popular car manufacturer and 70% of the diesel-powered passenger-car market of Country U were caught under the cheating of diesel emission test. Over earlier days, Company V had installed a software in many cars that is half a million diesel car in Country U and 10.5 million all over the world.
The company had defect device which will switch the operating mode and allows to pass the test. Company V pitched its cars as non-pollution vehicles and as efficient one. But in the year 2008, the rules in Country U on the diesel exhaust becomes very strict and Company V was unable to meet the new rules and standards.
So it installed the secret device. Once the scandal came to know to all the company sales were plunged along its reputation. Then the company stopped the affected cars sales and postponed the clean diesel advertisement and marketing. To diminish the damage the Company offered a ‘Customer Goodwill Package’ and offered other facilities.
It reaches a settlement of more than $15 billion with Country U regulators to match the costs of vehicle buy backs and other corrective actions. The harm to Country V’s reputation and performance of the market remains to be there.
Characters in the case:
- Company V
- Country U
To discuss: The competitive thinking which moves Company V to cheat on giving off the standards instead of complying with it and the ways Company V prevents such a scandal and the lesson to the other firms.
Want to see the full answer?
Check out a sample textbook solution
Chapter 18 Solutions
Principles of Marketing, Student Value Edition Plus MyLab Marketing with Pearson eText -- Access Card Package (17th Edition)
- Home Depot Marketing and Distribution Strategiesarrow_forwardWrite the best answer in the blank. Here is your word bank: Ego, monetary risk, psychographic, physical risk, demographic, social risk, geographic, functional risk, behavioral, Super Ego, psychological risk, Ikea Effect, Classical Conditioning, Linked Prosperity, Id, J.N.D. Home Depot targets the Professional segment (e.g. contractors, builders etc). They purchase in bulk and generally have specific delivery requirements because of the types of products they purchase. Home Depot uses what basis of segmentation to target their “Pros”: _______________________arrow_forwardThis print ad is targeting a consumer that most likely falls into this Maslow’s Hierarchy of Needs category: a) Self-Actualization b) Physiological Needs c) Love and Belonging d) Safety and Security e) None of the Abovearrow_forward
- Self-image congruence models suggest that we choose products when their attributes match some aspect of the self. Beyonce’s Beehive fan club uses this theory of the self-concept: a) Looking Glass Self b) Influential Self c) Ideal Self d) Extended Self e) None of the abovearrow_forwardAnswer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Each question is worth 10 points. Question: According to the video watched in class, explain how Ben & Jerry’s use activism to build their brand.arrow_forwardKFC is using what specific type of marketing in this ad: a) Ethical b) Corporate c) Philanthropic d) Consumer e) None of the abovearrow_forward
- Answer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Question: What did you learn about social media from our class?arrow_forwardAnswer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Question: Discuss the principles learned in the NPR audio called I Buy Therefore I Am?arrow_forwardThis ad for Real Beauty Production is using what type of Affect: https://www.youtube.com/watch?v=qbD3MXdGKFo&t=27s a) Positive b) Visual c) Classical d) Photographic e) None of the Abovearrow_forward
- Answer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Question: What does it take to get consumers to try something new?arrow_forwardAnswer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Each question is worth 10 points. Question: Explain how marketers use scent marketing to persuade consumers.arrow_forwardQuestion: A woman shopping for a new perfume remembers her favorite celebrity wearing this brand and decides to buy it. This is called: a) Social Awareness b) Positive Reinforcement c) Social Proof d) Instrumental Conditioning e) None of the abovearrow_forward
