An Activist Group Accuses a Leading Cell Phone and Netbook

question 100

Multiple Choice

An activist group accuses a leading cell phone and netbook manufacturer of deceiving customers through its stealth marketing campaign.The group argues that stealth marketing is unethical.They claim that the company hired several actors and rewarded them for promoting products.The campaign involved visiting stores on weekends and during the peak season,using their products on commuter trains,bars,and coffee shops.Which of the following,if true,strengthens the argument?

• A)Last year, thirty-five percent of Fortune 500 adopted Word of Mouth Marketing campaigns.
• B)The company did not give their targets the opportunity to raise instinctive defenses against persuasive marketing messages.
• C)Around seventy-five percent of cell phone consumers state that they heard of the product from friends.
• D)The Advertising Standards Authority claims that leading companies are using stealth marketing to manipulate customer base.
• E)The company offered 350,000 people a source of income through its stealth marketing campaign.

---

Definitions:

IRR

The Internal Rate of Return is a financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the initial investment from the present value of cash inflows.

AAR

Average Annual Return; calculating the mean annual return of an investment over a specified time period.

Discounted Payback

An investment appraisal method that calculates the time required to break even in present value terms, factoring in the time value of money.