Scenario 15-5 Starting in Late 2010, Shoppers at a Number of Bloom

question 106

Multiple Choice

Scenario 15-5
Starting in late 2010, shoppers at a number of Bloom supermarkets will be able to watch commercials on small notebook­sized monitors as they stroll through the aisles.The devices, or 3GTV's as creator Automated Media Services calls them, will advertise products nearby ranging from macaroni noodles to peanut butter.The mini- televisions are part of a pilot program in nine of the grocer's locations in Maryland and Virginia to test the effectiveness of commercials at the Point-Of-Purchase.Advertisers who are growing increasingly frustrated by TiVo and DirectTV's fast-forwarding capabilities, will be able to pitch consumers at what Automated believes is the most crucial point in the sale process.The new technology could help grocery stores such as Bloom save money on circulars, but the transition will likely not come without conflict.Before the first 3GTV was even
activated, one coalition group argued that the system would undercut parental authority by causing children to lobby for the product being advertised.
(Danielle Douglas, "Bloom to Try Out In­Store TV Advertising System." Washington Post, November 1, 2010.)
-(Scenario 15-5) If ClipTrick wanted to install a permanant-promotion display.The display would have to be used for more than:

• A)six months.
• B)eight months.
• C)one year.
• D)two year.

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Definitions:

Financial Risk

Financial risk involves the potential of losing financial resources or assets due to business activities, including market fluctuations, credit risk, and liquidity risk.

Fixed-Rate

Pertains to loans, mortgages, or other financial products that have an interest rate that remains constant for the entire term of the loan.

Payoff Profile

A graphical representation showing the potential profit and loss of an investment strategy at different prices of the underlying asset at expiration.

Hedge

An investment made to reduce the risk of adverse price movements in an asset, usually through derivatives such as options or futures contracts.