Scenario 2-5 Thomas Motors Is an Independent Auto Dealer in a Metropolitan

question 39

Multiple Choice

Scenario 2-5
Thomas Motors is an independent auto dealer in a metropolitan market dominated by a number of national franchise dealerships including General Motors, Ford, Daimler/Chrysler, and foreign imports Honda, Toyota and more. In order to maintain their share of market, Thomas must do significant advertising in a number of different media. They carry several different popular makes of automobiles, both foreign and domestic, and maintain a high level of inventory on their lot at all times.
-(Scenario 2-5) Thomas Motors wants to better understand the media consumption behaviors of consumers in their target markets. As a result, they wish to conduct a marketing research project to learn more about this issue. Which of the following types of firms are they most likely to commission to do such work?

• A) an advertiser
• B) an advertising agency
• C) an external facilitator
• D) a media organization

---

Definitions:

Production Possibilities Frontier

A graphical representation showing the maximum combinations of goods and/or services that can be produced with a fixed set of resources.

Opportunity Cost

The lost benefit that could have been enjoyed if the chosen option had not been taken, implying the trade-off of forgoing the next best alternative.

Efficient Production Process

A method of production that uses the least amount of resources to achieve the maximum output.

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.