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

question 9

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 15­5) Advertisements on the 3GTV's will likely be rotating on a very frequent basis.In fact, no one ad will be shown for any longer than one or two months at a time.These ads are known as:

• A)short-term promotional displays.
• B)rotating displays.
• C)push strategies.
• D)attention-grabbing displays.

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Definitions:

Directly Attributable Costs

Costs that can be directly linked to a specific asset, activity, or project, and thereby included in its cost base.

Assumes Liabilities

The process by which one party takes on the legal responsibility for the debts or obligations of another party.

Fair Values

The market value of selling an asset or the outlay for a liability transfer in a negotiated agreement among trading participants at the time of estimation.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of the identifiable net assets of the acquired business.