Scenario 1-1 in Fall 2004, Sears and Kmart Announced a Merger of Merger

question 44

Multiple Choice

Scenario 1-1
In fall 2004, Sears and Kmart announced a merger of their operations. The new company, known as Sears Holdings, will be based at Sears headquarters outside Chicago. While the new company will operate both Sears and Kmart stores, "several hundred" Kmarts will be converted to Sears. The companies currently operate about 3,500 stores combined. Kmart is known for its in-store special offers which it signals with blue lights. Recently Kmart has been losing ground to industry goliath Wal-Mart Stores Inc. The Troy, Michigan based Kmart has a history stretching back more than 100 years from its start as Kresge dime stores. To compete, Kmart has introduced Super K Stores which offer thousands of name brand products for personal use, home and auto, as well as full service grocery stores. (Jackie Sindrich and Michael Erman, "No Sure Way Seen to Keep Kmart's Blue Light Shining," Reuters, AOL Online, January 4, 2002. Parija Bhatnagar and Chris Isodore, "The Kmart Sears Deal,"CNNMoney, money.cnn.com, November 17, 2004.)
-(Scenario 1-1) A couple goes out shopping at the new store for the first time. They purchase over $250 worth of groceries and personal items. All in all, the new store is exciting, clean and refreshing. They take advantage of samples of pizza, trail mix and deli meat. The shopping excursion is fun for the couple and they enjoy their experience. As they leave the Super K, they see the display case and take a look at the specialty Super K products inside. They buy a hat with the Super K logo and replica of a "blue light" on it. This is an example of

• A) the functional nature of objects.
• B) stimulation of primary demand.
• C) cooperative advertising.
• D) the symbolic value of objects.