Abstract
This paper presents a method of providing a differentiated product to the heterogeneous group of students in the market ing principles course. It is the use of competency-based grading. This grading system requires that a student under stand marketing principles and how each is applied to attain a "C"; be able to integrate these principles and how each is applied to attain a "B"; and that an "A" requires the above plus the application of the integrated principles in the so lution of a major marketing case. A theoretical rationale for this approach based on learning hierarchies is provided. The method of application is then presented as are initial student reactions to it. Student reactions are generally positive.
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