Using Google, search for “Netflix Prize” to learn about this three-year, $1 million contest with the goal of improving its movie-

1. Using Google, search for “Netflix Prize” to learn about this three-year, $1 million contest with the goal of improving its movie-

contest and the subsequent troubles Netflix experienced with recommendation system by 10 percent. The company wanted to

Netflix Prize 2. Write a brief report on what you find and improve its system for predicting what customers might like based

argue for or against cancellation of the second contest. on their ratings of previous movies rented or viewed. The contest

(AACSB: Communication; Use of IT; Reflective Thinking) garnered more than 51,000 contestants from almost 200 coun-

2. What other contests or sweepstakes has Netflix sponsored? and engineers, and the winning team consisted of one-time com-

tries. The contest attracted entries from scientists, researchers,

Discuss the rules of the promotion and winners, if the petitors who joined forces to submit the best solution within a few

promotion is complete. (AACSB: Communication; Reflective minutes of the contest’s deadline. The sequel—Netflix Prize 2—

Thinking)

FOCUS ON Ethics

Hank is a sales representative for a CRM software company and

1. Is Hank being ethical? Discuss other sales tactics that might makes several cold calls each day prospecting for customers. He

be unethical. (AACSB: Communication; Ethical Reasoning; usually starts his call to a technology professional in a company by

Reflective Thinking)

introducing himself and asking the person if he or she would take a

2. What traits and behaviors should an ethical salesperson few moments to participate in a survey on technology needs in com- possess? What role does the sales manager play in ethical panies. After a few questions, however, it becomes obvious that selling behavior? (AACSB: Communication; Ethical Hank is trying to sell software solutions to the potential customer.

Reasoning; Reflective Thinking)

MARKETING & THE Economy

Procter & Gamble

cause customers to trade down, eroding profits even more. P&G Historically, consumer goods companies fare well during hard eco-

says it plans to raise prices in 2011. But the price cutting cycle may nomic times. Such items are relatively inexpensive to begin with,

be hard to stop. Not only do consumers get used to lower prices, brand loyalty is strong, and no one wants to give up clean clothes

but retailers also get into the habit of awarding shelf space to and healthy teeth. But as the sluggish economy has lasted longer

manufacturers who provide lower wholesale prices. There will than anticipated, the rules are changing. Consumers remain more

likely always be manufacturers willing to meet such retailer de- price sensitive, even on small purchases. For P&G, that means that

mands, adding pressure on P&G to continue offering its premium even brands such as Tide and Crest are experiencing fallout. To

brands at cheaper prices.

keep volume up, P&G has cut prices on existing products and in-

1. What can a P&G sales rep do, apart from product and pricing troduced cheaper items. Although this may protect sales volume,

strategies, to boost sales?

both tactics result in thinner margins and lower profits—as much

2. What should P&G do to boost profits in these and future as 18 percent lower. And the new cheaper-item strategy may

economic times?