GM Uses Blogging to Communicate with Customers Online

question 178

Multiple Choice

GM uses blogging to communicate with customers online.GM's vice chairman Bob Lutz-an auto industry veteran and the company's director of product development-began a blog about the company in 2005.Once readers realized it really was Lutz and not an advertising ploy,they quickly warmed to the idea and appreciated his candid comments about GM and its competition.This is an example of:

• A)a corporate blog.
• B)an interactive Web site.
• C)Narrowcasting.
• D)a noncorporate blog.
• E)a market concentration strategy.

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Definitions:

Price Takers

Firms or individuals who accept the market price as given and have no influence to alter the price of the good or service they are selling or buying.

Four-firm Concentration Ratio

A measurement that indicates the combined market share of the four largest firms in an industry, used to assess the degree of competition within the market.

Herfindahl Index

A measure of market concentration that is used to determine the amount of competition among firms within an industry.

Import Competition

The competition between domestic products and foreign products in a domestic market, affecting local industries.