Scenario 16-1 MakeWaves Is a Promotional Company with a Website That Offers

question 37

Multiple Choice

Scenario 16-1
MakeWaves is a promotional company with a website that offers the opportunity to sponsor a yacht in Grand Prix yacht racing. Commercial sponsors of the WaveRunner yacht can buy space for logos and graphics on the WaveRunner's sails, hulls, crew member's uniforms, and trailers. For enough sponsorship money, the WaveRunner will even change its name to better fit the sponsor. The WaveRunner is scheduled to compete in five Grand Prix yacht-racing events every year. MakeWaves claims on its website that sponsoring the WaveRunner in a race could result in millions of impressions in sailing magazines and newspapers as well as on broadcast media, and offers specific calculations to those who inquire. 
-(Scenario 16-1) MakeWaves is pitching a very specific sponsorship offer with its own benefits.But overall,the category of event sponsorship has certain advantages.One of the main advantages is that it: 

• A) has a higher reach than television. 
• B) targets certain groups of consumers who already purchase the sponsor brand. 
• C) offers personal contact with consumers and publicity during and after the event and helps activate other IBP efforts. 
• D) embeds the brand in a very nondescript and subtle way.

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Definitions:

Shortage

A situation where the demand for a good or service exceeds its supply in a market.

Quantity Demanded

The amount of a product that consumers are willing to buy at a specific price point, at a given time.

Equilibrium Price

The market price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Supply Falls

A situation where the quantity of goods or services available decreases in relation to demand.