True/False, Multiple Choice, & Short Answer (Please put your answer in the designated space)

True/False, Multiple Choice, & Short Answer (Please put your answer in the designated space)

Chapter 11

Question Answer (put your answer here)
1 There is a correlation between the effectiveness of an athlete in an endorsement role and what the athlete has achieved through his or her career (True / False)   TRUE
2 Emotions play a key role in the success of celebrity endorsements. (True / False)   FALSE
3 A marketer should be aware of potential problems with overexposure if the athlete who has been asked to be an endorser is already the official endorser for fifteen other products. (True / False)   TRUE
4 A manufacturer of personal care products has hired tennis star Maria Hunter to be the spokesperson for its global deodorant, antiperspirant, and body spray brands, which includes The Lady in the U.S., and Clear & Gentle in Europe. She will be the products’: A) agent. B) Endorser. C) Product representative. D) Sponsor channel. E) Sponsor encoder.   B) ENDORSER
5 Matthew Peters, pistol, rifle, and shotgun shooting champion, promotes E-Zone’s line of electronic and passive earmuffs at shooting competitions and at select tradeshows and events. The most likely reason why E-Zone chose Peters was: A) Low price. B) Availability. C) Market exposure. D) How his profile matched E-Zone’s target market. E) The ease with which his name can be recalled.   D) How his profile matched e-zone’s target market.  
6 Several factors have a positive influence on the effectiveness of an endorsement campaign. Which of the following is NOT one of those factors? A) Endorser provides ease of recall. B) Endorser is incongruent with target market. C) Endorser is recognizable. D) Endorser is physically attractive. E) Prospects for endorsement continuity are high.   A) Endorser provides ease of recall.
7 Q scores are used to: A) Establish sponsorship budgets. B) Develop sponsorship leverage through the creation of themed advertising. C) Help marketers assess each celebrity’s potential as a paid endorser. D) Determine the target market response to the awarding of venue naming rights. E) Provide qualitative measures for how effective individual celebrities would be as endorsers.   C) Help marketers assess each celebrity’s potential as a paid endorser.
8 A manufacturer of a stain remover is looking to use a celebrity endorser. What should be done as soon as the marketer has concluded its preliminary evaluation process? A) Prospective endorsers who made the first cut will need to be evaluated according to the congeniality matrix. B) The endorsement contract should be written and signed. C) Details, such as compensation and duties, must be individually determined for each prospective endorser. D) Each prospect that attained acceptable results in the preliminary evaluation should be qualitatively assessed. E) A Likert scale should be developed and the remaining prospective endorsers should be evaluated on it.   D) Each prospect who attained acceptable results in the preliminary evaluation should be qualitatively assessed.
9 Adidas has signed endorsement contracts with tennis players Andre Agassi, Justine Henin-Hardenne, and Tim Henman. According to their contracts, the players will wear Adidas gear at all events in which they appear. The Adidas logo will appear on their chest and the three stripes will be visible down the arms and legs of the athletes’ apparel. The International Tennis Federation has banned the use of the stripes because Adidas does not sponsor the Federation but it will allow the chest logo. This banishment reflects which endorsement problem? A) Misrepresentation of use B) Ambush marketing C) Endorsement conflict D) Conflicts with sports regulatory bodies E) Overexposure   D) Conflicts with sports regulatory bodies
10 During the 2006 Winter Olympics, one of the U.S. skiers was recognized for having won a full football scholarship in addition to winning a gold medal. Unfortunately, for the athlete, he signed several small endorsement contracts as an Olympic medal winner, and the NCAA refused to let him play on a college football team. This reflects a problem with: A) Undefined synergy. B) Amateur status. C) Overexposure. D) The use of a tying agreement. E) An illegal linkage.   D) The use of a tying agreement

Chapter 12

Question Answer (put your answer here)
1 Intellectual properties are intangible assets for which an organization can claim ownership. (True / False)   TRUE
2 Royalties, the compensation that licensors receive, is a percentage of the revenue generated by the sale of licensed merchandise bearing the licensor’s logos and other trademarks. (True / False)   TRUE
3 Infringement is more common when the trademarks are not well known, less valuable, and easy to attain the rights to. (True / False)   TRUE
4 The Canadian Professional Golf Tour and Firethorn Golf entered into an agreement. According to the agreement, the manufacturer Firethorn would have exclusive worldwide rights to manufacture, and distribute a full line of the Canadian Tour branded apparel through all retail outlets. What is the role of the Canadian Tour in this example? A) Franchisor B) Broker C) An agent D) Licensee E) Licensor   A) Franchisor
5 After signing a contract with the Iroquois Nationals Lacrosse organization, the Pointer Brand was authorized to produce and market casual sports apparel with the Iroquois Nationals’ logo and name. Identify Pointer’s role in this scenario. A) Franchisee B) Broker C) An agent D) Licensee E) Licensor   A) Franchisee
6 Burger King uses the tagline “Have it your way” in its advertisements and on some of its promotional merchandise. This illustrates: A) Broader product assortment. B) Licensable property. C) Revenue stream. D) Intellectual property. E) Tangible asset.   D) Intellectual property
7 Which of the following statements about compensation from licensing agreements is true? A) The largest portion of the licensee’s revenues is derived from royalty payments. B) The licensor pays a fixed fee to the licensee. C) The largest portion of the licensor’s revenues is derived from fixed fees. D) The licensor benefits by virtue of revenue exceeding the cost of goods sold. E) The licensee pays a fixed fee and royalty to the licensor.   A) The largest portion of the licensee’s revenues is derived from royalty payments.
8 Compliance reviews should be initiated within __________ of the contract and repeated as often as deemed necessary A) 1 month B) 5 years C) 1 year D) 45 days E) 30 days   A) 1 month
9 Owners of a desirable intellectual property are likely to receive many applications from prospective licensees. Which of the following is not a selection criterion used to determine if the licensing agreement should be signed? A) The licensing agreement will maximize the royalties paid to the licensor. B) The licensee and the licensor have compatible objectives. C) The licensing agreement does not conflict with other existing licensing agreements. D) The licensee and the licensor have comparable images in the market. E) The licensor and licensee should have control over the array of available products.   D) The licensee and the licensor have comparable images in the market.
10 Which of the following helps respond appropriately to end infringement, remove any illegal products, and to discourage such efforts? A) Confiscation B) Marketing information analysis (MIA) C) Market surveillance D) Cease-and desist orders E) Knock-offs   D) Cease-and desist orders

Week 5 – Short Essay (10 points)

Chapter Question
11 One of the most common quantitative measures available to marketers is the Q score (see textbook, p.333-335). Q Score Article related to Q Score   Let us practice Q score system. Find recent ads, which use sport celebrities endorsement. Locate three ads that feature athlete endorsers (example: athlete endorser – Tiger Woods; product – Buick)     Athlete Endorser Product I use it, so should you   Shaquille O’Neal Oreos I’m an expert, I think you should use it                 Michael Jordan Nike I think it’s cool, so you should use it                 John Madden Electronic Arts                                                                                                                                     Do you think the decision to use the athlete as the ads (that you find above) was a good one? Please provide your thoughts whether it was good or not, using different criteria that Q score uses (e.g., popular, achiever, credible, congruence/target market, attractive) (see table 11.3 p. 335 in the textbook) (8-15 sentences).  
Answer (put your answer here)
The decision to use the athletes in the advertisements was an extremely good one. Athletes are celebrated and popular individuals within the society. Having the face of a successful athlete endorsing has several athletes. One of them is building brand awareness. Athletes such as Tyson have greatly improved the brand awareness for Adidas, Nike, and Gillette. The usage of different Q score criteria is a vital method that evaluates the benefits that a particular endorsement will have on the company’s product or service. Q scores are important as they assist in delineating the celebrity’s strengths and relevance. Therefore, while a celebrity may be highly effective in promoting food product, he/she may be ineffective in endorsing sporting products. It is imperative to acknowledge that celebrity endorsements are the face of the organization. Therefore, it is necessary to alternate the Q score criteria to suit the unique situation. Lastly, endorsements are not considered direct investments. Rather, they are expenses that must be controlled to achieve the best possible outcome. Changing the criteria is necessary for the sake of discovering the perfect celebrity endorsement that embodies the organization’s vision, mission, and image.
12 Question
The O’Bannon v. NCAA Ruling   Please read and watch the following information:   This is one of the recent cases related to licensing contract in NCAA. Do you think former student-athletes should be paid by NCAA that uses their images for commercial purposes? Why do you think it is important case? What are the consequences of the decision? (8-15 sentences)  
Answer (put your answer here)
All athletes consider their image as part of a major investment and very valuable. To that extent, it is important that they be compensated for their role in enriching sporting agencies and other companies. This is an important case since there are a large number of students graduating from college every year. Exploiting the talents of these athletes without compensating them is fraudulent and morally unethical. The O’Bannon v. NCAA case is an important one since it will rectify the imbalance that exists within the sporting fraternity. One of the major implications of this decision is that the popularity of athletes as excellent endorsements will decrease significantly. This is because they will be more valuable and expensive to acquire. However, this court ruling also has the effect of regulating the sector particularly in terms of enforcing laws that protect the athlete.            

13. Go to the CLC Web site ( Find out which universities and colleges are affiliated with the CLC (Most of D1-FBS Schools belong in CLC). What is business of the CLC? What is the prevailing royalty rate of the universities and colleges by its licenses? How much these licensing deals are important for the universities and colleges? You could not find a lot of information of it through Internet. Therefore, let’s share some information that you find about the CLC.

You can find licensing contract examples of UNC and UT with CLC in the textbook.  

  • Appendix B University of North Carolina (UNC) Licensing Information (textbook: p.639)
  • Appendix C University of Texas at Austin (UT) Licensing Information (textbook: p.645)

I found some links related to the CLC. Please check them.  

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