(Solved Homework): Livestrong is currently one of the most visible and active charities in the world…

Livestrong is currently one of the most visible and active charities in the world. It is consistently praised as resoundingly efficient and accountable; Charity Navigator recently gave Livestrong a rating of four stars (its highest) and a score of 64 out of 70 for its financial responsibility and its transparency. However, all is not well at Livestrong. For years, cyclist and cancer survivor Lance Armstrong has been the face of Livestrong—a living symbol of the organization’s commitment to empowering cancer patients to live to the fullest. Hundreds of thousands of individuals have given to Livestrong or bought a yellow wristband because they were inspired by Armstrong’s bravery in overcoming cancer and reaching the pinnacle of sporting success.
However, Armstrong is now a tainted symbol. After a thorough investigation, the United States Anti Doping Agency presented a mountain of evidence showing that Armstrong not only used performance-enhancing drugs during his career, but that he was in charge of a systematic doping program that pressured teammates to use drugs as well. Based on this evidence (and later confirmed by Armstrong’s own admission), the USADA banned Armstrong from competing in any of its events, and the International Cycling Union stripped him of all seven of his Tour de France titles. Lance Armstrong was now no longer a symbol of triumph or perseverance; in most eyes, he was simply a cheater who got caught.
In the midst of this professional disgrace, Armstrong decided that he would step down as chairman of Livestrong. Though he would continue to be a member of Livestrong’s board, he would no longer have a role as its public face as he did for the past 15 years. This is, of course, was a huge blow to the organization, which lost its founder—and its best fundraiser.

Brent Schrotenboer, “USADA Release Massive Evidence Vs. Lance Armstrong,” USA Today, October 11, 2012, www.usatoday.com/story/sports/cycling/2012/10/10/lance-armstrong-usada-reasoned-decision-teammates-doping/1624551/ (Accessed March 26, 2013); David Wharton and Lance Pugmire, “USADA Report Details Case Against Lance Armstrong,” Los Angeles Times, October 11, 2012, http://articles.latimes.com/2012/oct/11/sports/la-sp-armstrong-doping-20121011 (Accessed March 26, 2013); “Factbox: State of the Lance Armstrong Foundations’ Finances,” Chicago Tribune, October 17, 2012, http://articles.chicagotribune.com/2012-10-17/business/sns-rt-us-cycling-armstrong-financesbre89g21g-20121017_1_testicular-cancer-lance-armstrong-foundation-austin (Accessed March 26, 2013); Krishnadev Calamur, “Lance Armstrong Admits to Using Performance-enhancing Drugs,” NPR, January 17, 2013, www.npr.org/blogs/thetwo-way/2013/01/17/169650077/lance-armstrong-to-admit-to-using-performance-enhancing-drugs (Accessed March 26, 2013); “Lance Armstrong Foundation,” Charity Navigator, www.charitynavigator.org/index.cfm?bay=search.summary&orgid=6570 (Accessed March 26, 2013); Lance Pugmire, “Lance Armstrong Quits Livestrong Post, Loses Endorsement Deals,” Los Angeles Times, October 18, 2012, http://articles.latimes.com/2012/oct/18/sports/la-sp-lance-armstrong-20121018 (Accessed March 26, 2013); “Where The Money Goes,” Livestrong, October 31, 2012, www.livestrong.org/What-We-Do/Our-Approach/Where-the-Money-Goes (Accessed March 26, 2013).

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1. Which of the following service quality components was most affected by Lance Armstrong’s doping admission?

A. Tangibles
B. Reliability.
C. Empathy
D. Assurance.
E. Responsiveness.

2. Which of the following is true regarding Livestrong’s relationship marketing?

A. Satisfied customers are likely to engage in positive word-of-mouth communication, thereby helping to bring in new donors for Livestrong.
B. It is more cost-effective for Livestrong to solicit repeat donations than to focus only on attracting new ones.
C. Livestrong could develop structural bonds by offering a service connecting donors and cancer patients directly.
D. Livestrong could develop structural bonds by offering a service connecting donors and cancer patients directly.
E. All of these.

3. Which of the following represents an example of internal marketing at Livestrong?

A. Providing employees with a series of talking points regarding the doping scandal.
B. Refocusing the company strategy to make Livestrong as efficient and effective as possible.
C. Giving employees an extra week of paid time off for working diligently through the scandal.
D. Sponsoring a telethon to raise funds for cancer research.
E. Launching a series of Internet banner advertisements for the company.

4. Which of the following strategy modifications was Livestrong most likely to make following Lance Armstrong’s doping scandal?

A. Modifying its target market to provide support for family members of cancer patients instead of the patients themselves.
B. Modifying its target market to provide support for family members of cancer patients instead of the patients themselves.
C. Seeking out marketing professionals to help develop an advertising campaign promising a new path forward.
D. Imposing a new pricing structure for its services and becoming a for-profit organization.
E. None of these.

Expert Answer

Answer

1. Answer is Option – Reliability

2. Answer is Option E – All of these

3. Answer is Option  B. Refocusing the company strategy to make Livestrong as efficient and effective as possible.

4. Answer is Option  C. Seeking out marketing professionals to help develop an advertising campaign promising a new path forward.

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