ComicalYou Is a New Social Media Service in Which Participants

question 276

Multiple Choice

ComicalYou is a new social media service in which participants create avatars to represent themselves, describe their lives, and interact with one another. All the postings are graphical, presenting the messages in the form of comic panels and strips. The service's software easily converts ideas into whimsical images. The site's creators, Ginny and RJ, believe that ComicalYou will be especially appealing to young people because it is so effective in conveying emotional content with a lighthearted appeal. They, along with a team of six employees, have completed the software, tested it on two dozen of their closest friends, and are eager to open up their site to users. As ComicalYou reaches the introduction stage of the product life cycle, what marketing strategy is most appropriate?

• A) Lower price slightly to increase sales.
• B) Focus on making customers aware of the product and its benefits.
• C) Cut prices in response to increased competition.
• D) Increase advertising in response to greater competition.
• E) Develop product adaptations to extend the product's life.

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Definitions:

Taxed Away

Refers to the reduction in income or resources that occurs as a result of taxation.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Monopoly

A market structure characterized by a single seller dominating the market, with no close substitutes for the product or service offered, leading to limited competition.

Average Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.