Sam and Jackson Have Just Returned from a Houston Astros

question 7

Multiple Choice

Sam and Jackson have just returned from a Houston Astros game at the new Astros ballpark. The ballpark really impressed them. What really caught their attention, however, was the unique way that Coca-Cola sold its products. There were roving teams of "Cola Buddies" moving throughout the crowd during the game. These teams were passing out "free coupons" for Cokes, souvenir cups, dugout passes, and free tickets to next week's game. Sam and Jackson will always remember how great their day at the ballpark was and will certainly choose Coca-Cola when given the opportunity. This is an example of which of the following communication strategies?

• A) foot-in-the-door marketing
• B) viral marketing
• C) guerrilla marketing
• D) demand-based marketing

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Definitions:

Investment Decisions

Choices made by individuals or firms regarding the allocation of resources to different assets or projects with the expectation of earning a return.

Correlation

A numerical indicator that captures how much two variables move in tandem, showing both how strong their linkage is and in what direction it lies.

Risk-adjusted Discount Rates

Discount rates that are adjusted to reflect the risk of an investment, used in calculating the present value of expected future cash flows.

Unsystematic Risk

The risk associated with a specific company or industry, which can be reduced through diversification.