Scenario 15-3 It's Time to Take Your Weekly Trip to the Grocery

question 96

Multiple Choice

Scenario 15-3
It's time to take your weekly trip to the grocery store.You bring a coupon good for 50¢ off a national brand of coffee.As you walk the aisles, a woman asks if you'd like to try a slice of pizza.After you taste it, she points out where the brand is kept in the freezer display.When you get to your favorite brand of toothpaste, you're delighted to find that a toothbrush with the same brand name is attached to the box at no charge.You turn the corner and run into a cardboard cutout of one of the stars from a leading medical drama on TV.This display has a medical kit full of a new brand of pain reliever built into it.Your last stop is the cereal aisle, where you notice that one brand offers a chance to buy a T-shirt with a picture of the brand's cartoon character for $4.95.
-(Scenario 15-3) Which of the several possible objectives of promotion did all these activities have in common?

• A)to highlight a particular product attribute
• B)to build an image for a product
• C)to elicit an immediate purchase of a product
• D)to create loyalty toward a product

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Definitions:

Treynor Measure

A performance metric for determining how well an investment compensates the investor for taking risk, calculated as the excess return over the risk-free rate relative to the beta of the portfolio.

Beta

A means to evaluate the fluctuation, or inherent risk, of a security or portfolio against the aggregate market.

S&P 500 Index

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, often used as a benchmark for the overall market.