Scenario 15-5 Starting in Late 2010, Shoppers at a Number of Bloom

question 72

Multiple Choice

Scenario 15-5
Starting in late 2010, shoppers at a number of Bloom supermarkets will be able to watch commercials on small notebook-sized monitors as they stroll through the aisles. The devices, or 3GTV's as creator Automated Media Services calls them, will advertise products nearby ranging from macaroni noodles to peanut butter. The mini-televisions are part of a pilot program in nine of the grocer's locations in Maryland and Virginia to test the effectiveness of commercials at the point-of-purchase. Advertisers, which are growing increasingly frustrated by TiVo and DirectTV's fast-forwarding capabilities, will be able to pitch consumers at what Automated believes is the most crucial point in the sale process. The new technology could help grocery stores such as Bloom save money on circulars, but the transition will likely not come without conflict. Before the first 3GTV was even activated, one coalition group argued that the system would undercut parental authority by causing children to lobby for the product being advertised.(Danielle Douglas, "Bloom to Try Out In-Store TV Advertising System." Washington Post, November 1, 2010.)
-(Scenario 15-5) Which of the following is not one of the objectives of point-of-purchase advertising?

• A)Maintain purchase loyalty among brand-loyal users.
• B)Stimulate trial use by users of competitive brands.
• C)Draw consumers' attention to a brand in the retail setting.
• D)Display product features that require long-term attention in order to understand.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economic Efficiency

A state in which resources are optimally allocated to serve each person in the best way while minimizing waste and inefficiency.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, stringent regulations, and established brand loyalty.

Brand Loyalty

A customer's consistent preference for one brand over all others, often reflected in repeated purchases.