Use This Information for Question That Refer to the Super

question 86

Multiple Choice

Use this information for question that refer to the Super Gaming Company and Accessories (SGCA) case. Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories (SGCA) , is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide, but in California is carried in only 10 percent of stores. So, Kayla has set an objective of being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits its target market of teen and young adult gamers. The SuperDuperGamer uses a new technology and is expected to be a breakthrough product, but it will be important to build awareness for it to succeed. So, the advertising objective is for 40% of SGCA's target market to be aware of the new SuperDuperGamer model within 3 months. SGCA also wants to help its retailers reduce their current stock of SuperGamer computers before the new model comes out in a month. The SuperGamer has been on the market for two years and has been a top seller in the category. SGCA's advertising objective for the SuperGamer computer is to reduce current dealer stock by 80% within the next month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to significantly enhance the game-playing experience with older computers. Research with gamers show that it is very well received, so the advertising objective for the SuperEnhancer sound card is to gain 40% market share among all gaming-specific sound cards in the next year. To help achieve that objective, Jurgenson is planning to use an ad that shows the sound card and a game player being knocked off his chair by the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the SuperEnhancer Sound Beats All Others!"
A competitor of SGCA has a magazine ad with a headline that claims "Our new sound card makes SGCA's SuperEnhancer old news." The Federal Trade Commission

• A) discourages ads such as this-since it is unfair to use another firm's name in a way that is not favorable to the firm.
• B) might require the competitor to provide evidence to support this copy thrust.
• C) might criticize this ad as wasteful because it is institutional advertising and not product advertising.
• D) would permit this ad in a trade magazine but not in a magazine read by final consumers.
• E) would view this as comparative advertising, which is illegal in the U.S.

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Definitions:

Employer Contributions

Payments made by an employer into a benefits plan, pension, or savings account on behalf of their employees.

At-Will Doctrine

Essentially means an employee hired for an indefinite period may be discharged for any or no reason, cause or no cause, unless specifically prohibited by law.

HR Policy

Guidelines and rules set by a company to manage its workforce and to regulate aspects such as recruitment, compensation, and employee relations.

Just Cause Contract

An employment agreement which specifies that an employee can only be terminated for specified, justifiable reasons.