Scenario1-5
Exodus Moving is a small business that was created to serve local furniture stores’
delivery needs in the Boulder Colorado area. They have specialized equipment that
allows them to lift and transfer large, bulky pieces of furniture with less risk of damage
than most traditional movers. Many of these furniture stores do not sell enough volume
to keep their own trucks and drivers busy all of the time, so Exodus fills a real market
need. As a result, most such stores are very interested in outsourcing delivery service
needs. Exodus has attracted many customers from these stores by guaranteeing 48 hour
delivery within a 50 mile radius of any of the stores they serve. Eventually, Exodus
hopes to attract the business of other retailers who might require delivery services.
As a result of vigorous advertising, Exodus has created inelasticity of demand to price
changes. Which of the following will hold true in such a situation?
a. The company’s customers will have low brand loyalty.
b. The customers will be less sensitive to price increases by the company.
c. The company will need to lower the price of its delivery services.
d. The company will have low brand equity.
Like many companies today, a young but growing electronics retailer knows it needs
help. If it is like most clients, in what two areas does it need the most help from an ad
agency?
a. Creating value for the product, and setting objectives
b. Integrating the brand within the media, and generating new ideas
c. Defining the product, and creating brand awareness