Derek Thompson presents evidence on both sides of the debate about whether Super Bowl ads are a waste of money or worthwhile advertising venues. Questions: 1. Rather than the price you pay for the advertisement, what does Mr. Thompson say that Super Bowl advertising is all about? 2. What is this year’s Super Bowl ads… Read more »
Posts Tagged: qualitative issues in cost decision making
A Cost Benefit Analysis of Super Bowl Commercials
Advertisers paid up to $4 million for a 30-second spot during the Super Bowl. This article examines the Go Daddy spot and the potential cost effectiveness of the company’s Super Bowl ads. Questions: 1. According to the article, how many customers does it take to break even and what amount on average must they spend?… Read more »
Sometimes Plans Just Don’t Work Out
Although it was an excellent strategy to run a two-minute Bob Dylan ad at the end of the third quarter, the moment of peak Super Bowl excitement, the Seahawks stole the show early in a 36-0 blowout. Questions: 1. How much did the 2-minute ad cost Chrysler? 2. According to the article, when will the… Read more »
No Symbolic Message of Contrition for Jamie Dimon
What a difference a year makes for Jamie Dimon! Last year, he had half of his paycheck cut to a measley $11.5 million for an embarrassing multi-million dollar trading blowup that resulted in $1 billion in fines. This year, after Chase paid the feds $20 billion in penalties for transgressions committed on Dimon’s watch, JPMorgan’s… Read more »
Nothing’s sacred!
Over the past decade, the number of “hospice survivors” in the United States has risen dramatically. According to the Washington Post, this is, in part, because hospice companies earn more by recruiting patients who aren’t actually dying. Healthier patients are more profitable because they require fewer visits and stay enrolled longer. Questions: 1. How large… Read more »
What Do Rodney Dangerfield and Some U.S. Companies Have in Common?
CoreBrand, a consultancy firm investigating brand reputation, recently released a report on 1,000 U.S. Companies. The results are presented in this article. Interestingly the most respected brands are in the same industry and they are Coca-Cola and PepsiCo, Inc. While Coke has enjoyed this status for six years straight, Pepsi moved up from being the… Read more »
Amazon’s profit strategy?
Almost daily, Amazon announces that it is entering another new venture. How do they do it, since they have yet to show profit that supports their share price? Questions: 1. After reading the article, do you think that Amazon with stay with a discounter form of commerce? 2. How do you think Amazon accounts for… Read more »
A Dragnet for Astroturfing
As a result of a year-long investigation, New York regulators will announced on September 23, 2013 that they would crackdown on deceptive and fake Internet reviews on products and services. Agreements have been reached with 19 companies to cease their misleading practices and pay a total of $350,000 in penalties. Questions: 1. Where were some… Read more »
Biotechnology Firm, Amgen, Acquires Anti-cancer Drugs
Although Amgen is the world’s largest biotechnology company, they have not been in the anti-cancer drug market until now. Amgen, like other drug makers, is trying to refresh aging product lines through the acquisition. Questions: 1. What is the ranking of this takeover of biotechnology firms, in terms of historic purchases? What are examples of… Read more »
The Reinvention of Pawn Shops
The pawnshop industry is growing. In 2007, there were approximately 6,400 pawn shops nation-wide. Now there are over 10,000. The expansion in pawnshops is fed, in part, by the increased number of Americans with tarnished credit which often bars them from the mainstream financial system. This article explains some of the niche services now offered… Read more »