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

question 14

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) Which of the following is one of the objectives of Point-of-Purchase advertising?

• A)Display product features that require long-term attention in order to understand.
• B)Stimulate trial use by current users of the brand.
• C)Draw consumers' attention toward brands that the company used to sell.
• D)Maintain purchase loyalty among brand-loyal users.

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Definitions:

Miller-Orr Model

A financial model that helps in managing cash flows and cash reserves of firms, focusing on maintaining an optimal balance level.

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period, reflecting the cost of borrowing or the gain on savings.

Target Cash Balance

The ideal amount of cash that a company aims to hold to meet operational and transaction needs while minimizing holding costs.

Miller-Orr Model

A model used in financial management to determine the optimal level for cash balances under uncertainty.