Question 1. Read the case below about Square, Inc then answer the following questions TRUE/FALSE

In October 2015, amid rising fears about the security of credit card transactions, financial institutions and businesses made the transition to using chip cards. Unlike the quick swipe of a magnetic stripe on the back of traditional credit and debit cards, chip cards have to be left inside the terminal while the embedded chip verifies the transaction. While there is no consistent method for measuring transaction speed, news agencies report average chip speeds of anywhere from 8 seconds to 13 seconds. The switch to chip readers was precarious, with many businesses taping over the chip card slots in the terminals until the kinks were worked out. Even after a year, some businesses still could not process chips and continued to utilize the magnetic stripe for transactions. Financial institutions thought the additional security benefits of the chips would overshadow the added wait times. Yet a survey conducted by Harbortouch in 2016 showed that nearly four times as many consumers prefer speedy transactions over the additional security.“Consumers and business owners alike loathe waiting for chip cards to process,” said Jesse Dorogusker, Square’s Hardware Lead said in a blog post.Founded in 2009 and headquartered in San Francisco, California, Square started with the simple idea that all businesses, regardless of size, should be able to accept credit cards. They offer cohesive products to run an entire business, including point-of-sale service tools for

accepting credit cards, tracking inventory, real-time analytics, and invoicing. Square also offers sellers financial and marketing services. Square Cash is an additional service available for businesses and individuals to send and receive money. In response to customer inconvenience at the slow chip readers, in September 2016, Square announced that it had reduced the speed of their chip card reader by 25 percent, from 5.7 seconds to 4.2 seconds (measured from when a card is inserted to when payment is complete). They also announced a goal of around 3 seconds for the final transaction time. “We’re committed to saving time for our sellers and the customers they serve. Conversations with business owners should be about the delicious cheeseburger you ate or the new haircut you just stopped in for, not the amount of time it takes to pay for them,” said Dorogusker.Square was able to tackle the problem of speed better than others because they designed both the hardware and the software used in the payment operation. So engineers had the opportunity to optimize the entire system to work better together and faster. Over 75 percent of cards processed on Square now contain a chip, up from 40 percent a year ago. Square released a $49 contactless payment and chip reader terminal with a simple design and a compact feel. In addition to quickly accepting chip cards, it takes contactless payments like Apple Pay and Android Pay. Over half a million of the new readers have been ordered by sellers from Santa Fe to St. Louis. Square is not alone in their efforts to reduce chip card transaction times. Visa debuted Quick Chip in 2016, claiming it would make the checkout experience comparable to magnetic stripe transactions.

Answer the following questions TRUE/FALSE

a The main philosophy and practice of marketing is the same whether marketing to a business organization or a consumer.

b. Square may face business trouble in the future because they have not bothered to foster a committed relationship with other businesses.

c. When in the business of offering devices for monetary transactions, trust is an important condition in the business relationship.

d.Square’s main customers are original equipment manufacturers (OEMs).

e. Square is a provider of both business products and business services.

Question

Question 1. Read the case below about Square, Inc then answer the following questions TRUE/FALSE

In October 2015, amid rising fears about the security of credit card transactions, financial institutions and businesses made the transition to using chip cards. Unlike the quick swipe of a magnetic stripe on the back of traditional credit and debit cards, chip cards have to be left inside the terminal while the embedded chip verifies the transaction. While there is no consistent method for measuring transaction speed, news agencies report average chip speeds of anywhere from 8 seconds to 13 seconds. The switch to chip readers was precarious, with many businesses taping over the chip card slots in the terminals until the kinks were worked out. Even after a year, some businesses still could not process chips and continued to utilize the magnetic stripe for transactions. Financial institutions thought the additional security benefits of the chips would overshadow the added wait times. Yet a survey conducted by Harbortouch in 2016 showed that nearly four times as many consumers prefer speedy transactions over the additional security.“Consumers and business owners alike loathe waiting for chip cards to process,” said Jesse Dorogusker, Square’s Hardware Lead said in a blog post.Founded in 2009 and headquartered in San Francisco, California, Square started with the simple idea that all businesses, regardless of size, should be able to accept credit cards. They offer cohesive products to run an entire business, including point-of-sale service tools for

accepting credit cards, tracking inventory, real-time analytics, and invoicing. Square also offers sellers financial and marketing services. Square Cash is an additional service available for businesses and individuals to send and receive money. In response to customer inconvenience at the slow chip readers, in September 2016, Square announced that it had reduced the speed of their chip card reader by 25 percent, from 5.7 seconds to 4.2 seconds (measured from when a card is inserted to when payment is complete). They also announced a goal of around 3 seconds for the final transaction time. “We’re committed to saving time for our sellers and the customers they serve. Conversations with business owners should be about the delicious cheeseburger you ate or the new haircut you just stopped in for, not the amount of time it takes to pay for them,” said Dorogusker.Square was able to tackle the problem of speed better than others because they designed both the hardware and the software used in the payment operation. So engineers had the opportunity to optimize the entire system to work better together and faster. Over 75 percent of cards processed on Square now contain a chip, up from 40 percent a year ago. Square released a $49 contactless payment and chip reader terminal with a simple design and a compact feel. In addition to quickly accepting chip cards, it takes contactless payments like Apple Pay and Android Pay. Over half a million of the new readers have been ordered by sellers from Santa Fe to St. Louis. Square is not alone in their efforts to reduce chip card transaction times. Visa debuted Quick Chip in 2016, claiming it would make the checkout experience comparable to magnetic stripe transactions.

Answer the following questions TRUE/FALSE

a The main philosophy and practice of marketing is the same whether marketing to a business organization or a consumer.

b. Square may face business trouble in the future because they have not bothered to foster a committed relationship with other businesses.

c. When in the business of offering devices for monetary transactions, trust is an important condition in the business relationship.

d.Square’s main customers are original equipment manufacturers (OEMs).

e. Square is a provider of both business products and business services.

Accepted Answer

c. True
e. True