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Overview

This best-selling book is dedicated to the development of decision-making skills in marketing. It introduces concepts and tools useful in structuring and solving marketing problems, while extensive case studies provide an opportunity for those concepts and tools to be employed in practice. Consisting of 10 chapters and 43 cases that feature contemporary marketing perspectives and practices, this book covers the topics of marketing management: its foundations; financial aspects; decision-making and case analysis; opportunity analysis, market segmentation, and market targeting; product and service strategy and brand management; integrated marketing communication strategy and management; pricing strategy and management; the control process; and comprehensive marketing programs. For marketing executives and professionals.
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Editorial Reviews

Booknews
New edition of a text that introduces concepts and tools useful in structuring and solving marketing problems. Case studies describe actual marketing problems, thus providing an opportunity for the decision maker to develop strategies consistent with the underlying factors in the situation presented, as well as its implications for the organization and its environment. Kerin (Southern Methodist U.) and Peterson (U. of Texas) present 11 chapters that discuss foundations; financial aspects; decision making and case analysis; opportunity analysis and market targeting; strategies for product and service, integrated marketing communication and management, market channel, and pricing; interactive marketing and electronic commerce; the control process; and comprehensive programs. Annotation c. Book News, Inc., Portland, OR (booknews.com)
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Product Details

  • ISBN-13: 9780131421844
  • Publisher: Pearson
  • Publication date: 7/28/2003
  • Edition description: Tenth Edition
  • Edition number: 10
  • Pages: 696
  • Product dimensions: 8.14 (w) x 11.72 (h) x 1.25 (d)

Read an Excerpt

PREFACE:

Preface

Decision making in marketing is first and foremost a skill. Like most skills, it requires tools and terminology. Like all skills, it is best learned through practice. This book is dedicated to the development of decision-making skills in marketing. Textual material introduces concepts and tools useful in structuring and solving marketing problems. Case studies describing actual marketing problems provide an opportunity for those concepts and tools to be employed in practice. In every case study, the decision maker must develop a strategy consistent with the underlying factors existing in the situation presented and must consider the implications of that strategy for the organization and its environment.

The ninth edition of Strategic Marketing Problems: Cases and Comments seeks a balance between marketing management content and process. The book consists of 11 chapters and 42 cases.

Chapter 1, "Foundations of Strategic Marketing Management," provides an overview of the strategic marketing management process. The principal emphasis is on defining an organization's business, mission, and goals, identifying and framing organizational opportunities, formulating product-market strategies, budgeting, and controlling the marketing effort. The Appendix to Chapter 1 contains a marketing plan for an actual company, Paradise Kitchens&3174;, Inc. The plan is annotated to focus attention on substantive elements of the plan as well as style and layout elements.

Chapter 2, "Financial Aspects of Marketing Management," reviews basic concepts from managerial accounting and managerial finance that are useful inmarketing management. Primary emphasis is placed on such concepts as cost structure, relevant versus sunk costs, margins, contribution analysis, liquidity, discounted cash flow, operating leverage, and preparing pro forma income statements.

Chapter 3, "Marketing Decision Making and Case Analysis," introduces a systematic process for decision making and provides an overview of various aspects of case and decision analysis. A sample case and written student analysis are presented in the Appendix at the end of the book. The student analysis illustrates the nature and scope of a written case presentation, including the qualitative and quantitative analyses essential to a good presentation.

Chapter 4,"OpportunityAnalysis and Market Targeting," focuses on the identification and evaluation of marketing opportunities. Market segmentation, market targeting, and market potential and profitability issues are considered in some depth.

Chapter 5,"Product and Service Strategy and Brand Management," focuses on the management of the organization's offering. New-offering development, life-cycle management, product or service positioning, branding decisions, brand growth strategies, and brand valuation are emphasized.

Chapter 6, "Integrated Marketing Communication Strategy and Management," raises issues in the design, execution, and evaluation of an integrated communication mix. Decisions concerned with communications objectives, strategy, budgeting, programming, and effectiveness, as well as sales management, are addressed.

Chapter 7, "Marketing Channel Strategy and Management," introduces a variety of considerations affecting channel selection and modification as well as trade relations. Specific decision areas covered include direct versus indirect distribution, dual distribution, cost-benefit analysis of channel choice and management, and marketing channel conflict and coordination.

Chapter 8, "Pricing Strategy and Management," highlights concepts and applications in price determination and modification. Emphasis is placed on evaluating demand, cost, and competitive influences when selecting or modifying pricing strategies for products and services and product-line pricing.

Chapter 9, "Interactive Marketing and Electronic Commerce," introduces strategic marketing management issues encountered by companies engaged in electronic commerce. Attention is placed on marketing opportunity analysis, different Internet business models, formulating a customer value proposition, and strategic and operational challenges facing incumbent and new entrant companies in the new marketspace.

Chapter 10,"Marketing Strategy Reformulation: The Control Process," focuses on the appraisal of marketing actions for the purpose of developing reformulation and recovery strategies. Considerations and techniques applicable to strategic and operations control are introduced.

Chapter 11, "Comprehensive Marketing Programs," raises issues in developing integrated marketing strategies. Emphasis is placed on marketing program decisions for new and existing products and services, including issues related to marketing-mix interactions, marketing program implementation, and marketing organization.

The case selection in this book reflects a broad overview of contemporary marketing problems and applications. Seventy-six percent of the cases are dated since 1995; 40 percent are dated since 1998. Of the 42 cases included, 30 deal with consumer products and services and 12 have a business-to-business marketing orientation. Nine cases introduce marketing issues in the international arena. Marketing of services is addressed in four cases, and four cases deal with electronic commerce. Sixty-one percent of the cases are new, revised, or updated for this edition, and many have spreadsheet applications embedded in the case analysis. All text and case material has been classroom tested.

Computer-assisted programs and a student manual are available for use with 17 of the cases in the book. The manual contains all the material necessary to use spreadsheets. It includes a sample case demonstration, instructions for use with specific cases, and input and output forms. If this material is not available from your instructor or bookstore, please write to the publisher.

The efforts of many people are reflected here. First, we thank those institutions and individuals who have kindly granted us permission to include their cases in this edition. The cases contribute significantly to the overall quality of the book, and each individual is prominently acknowledged in the Contents and at the bottom of the page on which the case begins. We specifically wish to thank the Harvard Business School and The University of Western Ontario for granting permission to reproduce cases authored by their faculties. Second, we wish to thank our numerous collaborators, whose efforts made the difference between good cases and excellent cases. Third, we thank the adopters of the previous eight editions of the book for their many comments and suggestions for improvements. Finally, we wish to thank the numerous reviewers of this and previous editions for their conscientious reviews of our material: David Berkowitz, University of Alabama in Huntsville; Lynne Payne, Livingston University; Michael Laric, University of Baltimore; Charles Brooks, Quinnipiac College; Michael Messina, Gannon University; Avery Abernethy, Auburn University; Richard Kolbe, Kent State University; Dwight Scherban, Central Connecticut State University; David E. Griffith, University of Oklahoma; Tammy Pappas, Eastern Michigan University; Audrey Guskey, Duquesne University; and John Barnes, University of Texas at El Paso. Naturally, we bear full responsibility for any errors of omission and commission in the final product.

Roger A. Kerin
Robert A. Peterson

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Table of Contents

Preface
Ch. 1 Foundations of Strategic Marketing Management 1
App.: A Sample Marketing Plan 17
Ch. 2 Financial Aspects of Marketing Management 33
Ch. 3 Marketing Decision Making and Case Analysis 51
Ch. 4 Opportunity Analysis, Market Segmentation and Market Targeting 63
Sorzal Distributors 75
Jones: Blair Company 78
eBay's Globalization Strategy 88
Camar Automotive Hoist 106
Vector Marketing Corporation: Growth Drivers 115
Frito-Lay Dips 131
South Delaware Coors, Inc. 143
Ch. 5 Product and Service Strategy and Brand Management 153
Dr. Pepper/Seven Up, Inc.: Squirt Brand 167
Zoecon Corporation: Insect Growth Regulators 187
Soft and Silky Shaving Gel 197
Perpetual Care Hospital: Downtown Health Clinic 205
Procter & Gamble, Inc.: Scope 216
Frito Lay Company: Cracker Jack 228
Swisher Mower and Machine Company: Evaluating a Private Brand Opportunity 254
Ch. 6 Integrated Marketing Communication Strategy and Management 267
Carrington Furniture, Inc. (A) 279
Carrington Furniture, Inc. (B) 290
Cadbury Beverages, Inc.: CRUSH Brand 293
Drypers Corporation: National Television Advertising Campaign 308
Craft Marine Corporation 317
Godiva Europe 324
Make-Up Art Cosmetics Ltd. 341
Ch. 7 Marketing Channel Strategy and Management 355
Gateway, Inc. 367
Golf Logix: Measuring the Game of Golf 381
Goodyear Tire and Rubber Company 403
Steel Door Technologies 414
Masterton Carpet Mills, Inc. 419
Ch. 8 Pricing Strategy and Management 427
Southwest Airlines 437
Superior Supermarkets: Everyday Low Pricing 457
Burroughs Wellcome Company: Retrovir 468
Leiber Light 481
Augustine Medical, Inc.: The Bair Hugger Patient Warming System 484
Texas Instruments: Global Pricing in the Semiconductor Industry 494
Ch. 9 Marketing Strategy Reformulation: The Control Process 505
Affiniscape, Inc. 514
Pharmacia & Upjohn, Inc.: Rogaine Hair Regrowth Treatment 521
The Circle K Corporation 538
3M Telecom Systems Division: Fibrlok Splice 549
Macon Museum of Art 560
Ch. 10 Comprehensive Marketing Programs 571
Nintendo: The Launch of Game Boy Color 576
Show Circuit Frozen Dog Dinner 588
Unilever Canada: Becel Margarine 599
Frito-Lay, Inc.: SunChips Multigrain Snacks 611
CIMA Mountaineering, Inc. 628
Blair Water Purifiers India 645
App Preparing a Written Case Analysis 660
App Glossary of Selected Marketing Terms and Concepts 676
Subject Index 681
Company and Brand Index 689
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Preface

PREFACE:

Preface

Decision making in marketing is first and foremost a skill. Like most skills, it requires tools and terminology. Like all skills, it is best learned through practice. This book is dedicated to the development of decision-making skills in marketing. Textual material introduces concepts and tools useful in structuring and solving marketing problems. Case studies describing actual marketing problems provide an opportunity for those concepts and tools to be employed in practice. In every case study, the decision maker must develop a strategy consistent with the underlying factors existing in the situation presented and must consider the implications of that strategy for the organization and its environment.

The ninth edition of Strategic Marketing Problems: Cases and Comments seeks a balance between marketing management content and process. The book consists of 11 chapters and 42 cases.

Chapter 1, "Foundations of Strategic Marketing Management," provides an overview of the strategic marketing management process. The principal emphasis is on defining an organization's business, mission, and goals, identifying and framing organizational opportunities, formulating product-market strategies, budgeting, and controlling the marketing effort. The Appendix to Chapter 1 contains a marketing plan for an actual company, Paradise Kitchens&3174;, Inc. The plan is annotated to focus attention on substantive elements of the plan as well as style and layout elements.

Chapter 2, "Financial Aspects of Marketing Management," reviews basic concepts from managerial accounting and managerial finance that are usefulinmarketing management. Primary emphasis is placed on such concepts as cost structure, relevant versus sunk costs, margins, contribution analysis, liquidity, discounted cash flow, operating leverage, and preparing pro forma income statements.

Chapter 3, "Marketing Decision Making and Case Analysis," introduces a systematic process for decision making and provides an overview of various aspects of case and decision analysis. A sample case and written student analysis are presented in the Appendix at the end of the book. The student analysis illustrates the nature and scope of a written case presentation, including the qualitative and quantitative analyses essential to a good presentation.

Chapter 4,"OpportunityAnalysis and Market Targeting," focuses on the identification and evaluation of marketing opportunities. Market segmentation, market targeting, and market potential and profitability issues are considered in some depth.

Chapter 5,"Product and Service Strategy and Brand Management," focuses on the management of the organization's offering. New-offering development, life-cycle management, product or service positioning, branding decisions, brand growth strategies, and brand valuation are emphasized.

Chapter 6, "Integrated Marketing Communication Strategy and Management," raises issues in the design, execution, and evaluation of an integrated communication mix. Decisions concerned with communications objectives, strategy, budgeting, programming, and effectiveness, as well as sales management, are addressed.

Chapter 7, "Marketing Channel Strategy and Management," introduces a variety of considerations affecting channel selection and modification as well as trade relations. Specific decision areas covered include direct versus indirect distribution, dual distribution, cost-benefit analysis of channel choice and management, and marketing channel conflict and coordination.

Chapter 8, "Pricing Strategy and Management," highlights concepts and applications in price determination and modification. Emphasis is placed on evaluating demand, cost, and competitive influences when selecting or modifying pricing strategies for products and services and product-line pricing.

Chapter 9, "Interactive Marketing and Electronic Commerce," introduces strategic marketing management issues encountered by companies engaged in electronic commerce. Attention is placed on marketing opportunity analysis, different Internet business models, formulating a customer value proposition, and strategic and operational challenges facing incumbent and new entrant companies in the new marketspace.

Chapter 10,"Marketing Strategy Reformulation: The Control Process," focuses on the appraisal of marketing actions for the purpose of developing reformulation and recovery strategies. Considerations and techniques applicable to strategic and operations control are introduced.

Chapter 11, "Comprehensive Marketing Programs," raises issues in developing integrated marketing strategies. Emphasis is placed on marketing program decisions for new and existing products and services, including issues related to marketing-mix interactions, marketing program implementation, and marketing organization.

The case selection in this book reflects a broad overview of contemporary marketing problems and applications. Seventy-six percent of the cases are dated since 1995; 40 percent are dated since 1998. Of the 42 cases included, 30 deal with consumer products and services and 12 have a business-to-business marketing orientation. Nine cases introduce marketing issues in the international arena. Marketing of services is addressed in four cases, and four cases deal with electronic commerce. Sixty-one percent of the cases are new, revised, or updated for this edition, and many have spreadsheet applications embedded in the case analysis. All text and case material has been classroom tested.

Computer-assisted programs and a student manual are available for use with 17 of the cases in the book. The manual contains all the material necessary to use spreadsheets. It includes a sample case demonstration, instructions for use with specific cases, and input and output forms. If this material is not available from your instructor or bookstore, please write to the publisher.

The efforts of many people are reflected here. First, we thank those institutions and individuals who have kindly granted us permission to include their cases in this edition. The cases contribute significantly to the overall quality of the book, and each individual is prominently acknowledged in the Contents and at the bottom of the page on which the case begins. We specifically wish to thank the Harvard Business School and The University of Western Ontario for granting permission to reproduce cases authored by their faculties. Second, we wish to thank our numerous collaborators, whose efforts made the difference between good cases and excellent cases. Third, we thank the adopters of the previous eight editions of the book for their many comments and suggestions for improvements. Finally, we wish to thank the numerous reviewers of this and previous editions for their conscientious reviews of our material: David Berkowitz, University of Alabama in Huntsville; Lynne Payne, Livingston University; Michael Laric, University of Baltimore; Charles Brooks, Quinnipiac College; Michael Messina, Gannon University; Avery Abernethy, Auburn University; Richard Kolbe, Kent State University; Dwight Scherban, Central Connecticut State University; David E. Griffith, University of Oklahoma; Tammy Pappas, Eastern Michigan University; Audrey Guskey, Duquesne University; and John Barnes, University of Texas at El Paso. Naturally, we bear full responsibility for any errors of omission and commission in the final product.

Roger A. Kerin
Robert A. Peterson

Read More Show Less

Introduction

Preface

Decision making in marketing is first and foremost a skill. Like most skills, it requires tools and terminology. Like all skills, it is best learned through practice. This book is dedicated to the development of decision-making skills in marketing. Textual material introduces concepts and tools useful in structuring and solving marketing problems. Case studies describing actual marketing problems provide an opportunity for those concepts and tools to be employed in practice. In every case study, the decision maker must develop a strategy consistent with the underlying factors existing in the situation presented and must consider the implications of that strategy for the organization and its environment.

The ninth edition of Strategic Marketing Problems: Cases and Comments seeks a balance between marketing management content and process. The book consists of 11 chapters and 42 cases.

Chapter 1, "Foundations of Strategic Marketing Management," provides an overview of the strategic marketing management process. The principal emphasis is on defining an organization's business, mission, and goals, identifying and framing organizational opportunities, formulating product-market strategies, budgeting, and controlling the marketing effort. The Appendix to Chapter 1 contains a marketing plan for an actual company, Paradise Kitchens&3174;, Inc. The plan is annotated to focus attention on substantive elements of the plan as well as style and layout elements.

Chapter 2, "Financial Aspects of Marketing Management," reviews basic concepts from managerial accounting and managerial finance that are useful in marketingmanagement. Primary emphasis is placed on such concepts as cost structure, relevant versus sunk costs, margins, contribution analysis, liquidity, discounted cash flow, operating leverage, and preparing pro forma income statements.

Chapter 3, "Marketing Decision Making and Case Analysis," introduces a systematic process for decision making and provides an overview of various aspects of case and decision analysis. A sample case and written student analysis are presented in the Appendix at the end of the book. The student analysis illustrates the nature and scope of a written case presentation, including the qualitative and quantitative analyses essential to a good presentation.

Chapter 4,"OpportunityAnalysis and Market Targeting," focuses on the identification and evaluation of marketing opportunities. Market segmentation, market targeting, and market potential and profitability issues are considered in some depth.

Chapter 5,"Product and Service Strategy and Brand Management," focuses on the management of the organization's offering. New-offering development, life-cycle management, product or service positioning, branding decisions, brand growth strategies, and brand valuation are emphasized.

Chapter 6, "Integrated Marketing Communication Strategy and Management," raises issues in the design, execution, and evaluation of an integrated communication mix. Decisions concerned with communications objectives, strategy, budgeting, programming, and effectiveness, as well as sales management, are addressed.

Chapter 7, "Marketing Channel Strategy and Management," introduces a variety of considerations affecting channel selection and modification as well as trade relations. Specific decision areas covered include direct versus indirect distribution, dual distribution, cost-benefit analysis of channel choice and management, and marketing channel conflict and coordination.

Chapter 8, "Pricing Strategy and Management," highlights concepts and applications in price determination and modification. Emphasis is placed on evaluating demand, cost, and competitive influences when selecting or modifying pricing strategies for products and services and product-line pricing.

Chapter 9, "Interactive Marketing and Electronic Commerce," introduces strategic marketing management issues encountered by companies engaged in electronic commerce. Attention is placed on marketing opportunity analysis, different Internet business models, formulating a customer value proposition, and strategic and operational challenges facing incumbent and new entrant companies in the new marketspace.

Chapter 10,"Marketing Strategy Reformulation: The Control Process," focuses on the appraisal of marketing actions for the purpose of developing reformulation and recovery strategies. Considerations and techniques applicable to strategic and operations control are introduced.

Chapter 11, "Comprehensive Marketing Programs," raises issues in developing integrated marketing strategies. Emphasis is placed on marketing program decisions for new and existing products and services, including issues related to marketing-mix interactions, marketing program implementation, and marketing organization.

The case selection in this book reflects a broad overview of contemporary marketing problems and applications. Seventy-six percent of the cases are dated since 1995; 40 percent are dated since 1998. Of the 42 cases included, 30 deal with consumer products and services and 12 have a business-to-business marketing orientation. Nine cases introduce marketing issues in the international arena. Marketing of services is addressed in four cases, and four cases deal with electronic commerce. Sixty-one percent of the cases are new, revised, or updated for this edition, and many have spreadsheet applications embedded in the case analysis. All text and case material has been classroom tested.

Computer-assisted programs and a student manual are available for use with 17 of the cases in the book. The manual contains all the material necessary to use spreadsheets. It includes a sample case demonstration, instructions for use with specific cases, and input and output forms. If this material is not available from your instructor or bookstore, please write to the publisher.

The efforts of many people are reflected here. First, we thank those institutions and individuals who have kindly granted us permission to include their cases in this edition. The cases contribute significantly to the overall quality of the book, and each individual is prominently acknowledged in the Contents and at the bottom of the page on which the case begins. We specifically wish to thank the Harvard Business School and The University of Western Ontario for granting permission to reproduce cases authored by their faculties. Second, we wish to thank our numerous collaborators, whose efforts made the difference between good cases and excellent cases. Third, we thank the adopters of the previous eight editions of the book for their many comments and suggestions for improvements. Finally, we wish to thank the numerous reviewers of this and previous editions for their conscientious reviews of our material: David Berkowitz, University of Alabama in Huntsville; Lynne Payne, Livingston University; Michael Laric, University of Baltimore; Charles Brooks, Quinnipiac College; Michael Messina, Gannon University; Avery Abernethy, Auburn University; Richard Kolbe, Kent State University; Dwight Scherban, Central Connecticut State University; David E. Griffith, University of Oklahoma; Tammy Pappas, Eastern Michigan University; Audrey Guskey, Duquesne University; and John Barnes, University of Texas at El Paso. Naturally, we bear full responsibility for any errors of omission and commission in the final product.

Roger A. Kerin
Robert A. Peterson

Read More Show Less

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