Scenario 14-1 When the Social Networking/gaming Website, Foursquare, Was Launched in 2009

question 102

Multiple Choice

Scenario 14-1
When the social networking/gaming website, Foursquare, was launched in 2009, it was only accessible to residents in 100 U.S. cities. One year later, an updated version of the service allowed check-ins from locations all over the world, and has over 500,000 users internationally. The site which allows registered users to connect with friends and update their location receives over one million check-ins per week. When users visit a particular store their profile is automatically updated, and they can share their feelings about their experiences. The site now holds partnerships with over 800 establishments worldwide, and high-profile partnerships with the Bravo Network and The New York Times have greatly increased the site's popularity. 
-(Scenario 14-1) As the number of Foursquare users increases,so will the marketing efforts to appeal to the visitors of the site.Many of the site's users access the site via their cell phone,and companies are forced to create advertisements to fit these media channels.These advertisements are examples of: 

• A) intrusive marketing.  
• B) mobile marketing. 
• C) viral marketing. 
• D) splash marketing.

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Definitions:

Quantity Demanded

The overall quantity of a product or service that buyers are prepared to buy at a specific cost during a certain timeframe.

Demand Curve

A visual graph demonstrating the relationship between the cost of a product or service and how much of it is sought after during a particular timeframe.

Service

Economic activity where an intangible value is provided, such as healthcare, education, or entertainment, as opposed to producing a tangible product.

Substitute Goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other falls, and conversely with an increase of price.