Scenario 16

question 205

Multiple Choice

Scenario 16.1 Use the following to answer the questions.
When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends. After a few weeks, a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas.
Refer to Scenario 16.1. Which of the following is not an integrated communications tactic used by Toyota?

• A) Word-of-mouth communication
• B) Advertising
• C) Publicity
• D) Personal selling
• E) Sales promotion

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Definitions:

Depreciation Tax Shield

The reduction in income taxes that results from an entity's ability to deduct depreciation expense from its taxable income.

Operating Lease

An operating lease is a contract that allows for the use of an asset but does not convey rights of ownership of the asset.

Cyclical Nature

The inherent tendency of markets, economies, or certain stocks to move in cycles, experiencing periods of expansion and contraction.

Peak Periods

Times of maximum activity, demand, or use, typically stressing the capacity, resources, or systems involved.