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:

Market Value

The existing cost for buying or selling an asset or service in the marketplace.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus accumulated depreciation.

Poison Pill

A corporate tactic to avoid being acquired. A poison pill is a clause written into a firm’s bylaws that makes it prohibitively expensive for an acquiring firm to take control.

Takeover Attempt

A bid by a company or investor to acquire control of another company, often by purchasing a substantial portion of its stock.