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PART V
CASE SOLUTIONS
CASE 5-1 RAEX LASER STEEL
1) Create a diagram linking the value drivers for RAEX LASER steel to buyer satisfaction,
trust, relationship quality, and loyalty. Explain how RAEX branding was much more than a
promotion-driven process.
2) Should promotion and advertising come first or last in the brand building process? Does this
depend on whether the promotion is targeted at the “external consumer” (in this case the job
shops) or the “internal consumers” (in this case customer service employees)? Explain.
3) Discuss the importance of “internal marketing efforts” discussed in Question 2 to the success
4) Are buyers of RAEX LASER just “paying more for the name” or is it due to the economic
benefits associated with the name? What, if any, economic benefits accrue to buyers of
RAEX LASER steel?
5) Does the fact that job shops use brand name in their decision process mean that they are
irrational decision makers?
6) Describe the various ways in which reference groups and word-of-mouth might operate in
this setting.
The key example is that of the major laser cutter manufacturer recommending RAEX
7) The RAEX LASER brand was replaced by “Ruuki Laser” workshop-friendly steel. Evaluate
this decision in light of the perceptual issues relating to branding.
The RAEX name was certainly clever in that RAEX could be taken to mean “ray” or “laser
CASE 5-2 PACCAR – MORE THAN SHINY TRUCKS
Note: If Questions 3 and 4 are used, this could be the basis of a more extensive term project.
1) Define loyalty as you understand it from the text. Does Paccar with its Kenworth and
Peterbilt trucks create loyalty? Explain.
From the text:
• A consumer loyal to a brand (store or service), or a committed customer, has an
2) What type of buying process (straight rebuy, modified rebuy, new task) is the decision to buy
Kenworth for Herbert Schmidt? Would the buying process be the same for all carriers?
Explain.
For loyal buyers like Herbert Schmidt, it’s essentially a straight rebuy. This should be
3) Using all possible sources of information including the case, the internet, OTR truck dealers,
develop what you think the decision making unit looks like for a truck purchase. Does its
size depend on the size of the company or other factors? Explain.
4) Using all possible sources of information including the case, the internet, OTR truck dealers,
complete the following information in Table A. What implications does this have for Paccar
and other truck companies in terms of their marketing efforts?
Table A Evaluative Criteria and Organizational Role
Functional Role in Organization
Evaluative Criteria Used in
Purchase Decision
__________
__________
__________
_________
1.
2.
3.
4.
5.
.
.
.
.
.
.
.
.
.
.
5) Explain the role of reference groups for Paccar and its trucks?
Huge. Their reputation is backed up by numerous industry awards relating to quality and
6) Describe the differences you would expect between a company that owned their own trucks
versus those that lease. Relate these to the internal and external influences shown in Figure
19-1.
It might help to point students to Paccar’s PacLease page on their website. As of the time of
7) How does Paccar’s hybrid offering fit into their current brand image?
Their move in this way seems much less about the environment and much more about
