ValueNet Corporation Sells Electronic Learning Devices,consumer Electronics Products,and Collectibles Directly

question 115

Multiple Choice

ValueNet Corporation sells electronic learning devices,consumer electronics products,and collectibles directly to consumers using a team of telemarketers.The aggressive cold calling tactics recently boomeranged when the company became the target of irritated consumers and consumer activist groups who flooded ValueNet's phone system with return calls and messages.Management is planning to reduce the reliance on outbound calling and use other approaches like direct-response television (infomercials) . Which of the following,if true,would strengthen the argument for shifting to direct-response television marketing?

• A)Many mainstream companies such as P&G,Dell,Disney,and Bose have begun using infomercials to sell their products.
• B)ValueNet could slightly modify its telemarketing techniques and receive a much better customer response.
• C)TV media production costs are expected to increase substantially as the economy moves toward recovery.
• D)Many Canadians have registered their telephone numbers with the National Do Not Call Registry,and the number of registered numbers continues to grow.
• E)Despite objections and angry responses to cold calls,total sales from telephone marketing have been steady over the years.

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Definitions:

Prohibited

Actions or activities that are not permitted or allowed by law, regulation, or policy.

Basic Earnings

Earnings calculated by dividing the net income by the total number of outstanding shares, showing the profit earned per share.

Price/Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, commonly used by investors to determine stock attractiveness.

Noncumulative Preferred Stock

A type of preferred stock where dividends do not accumulate if they are not declared or paid in any given year, contrasting with cumulative preferred stock.