Scenario 19-1 Hallmark Cards Is Just One of Thousands of Companies That

question 74

Multiple Choice

Scenario 19-1
Hallmark Cards is just one of thousands of companies that have a strong online presence. Hallmark's Twitter account and Facebook page allow the company to talk directly to customers and also let customers talk to each other. Hallmark Social Calendar is a Facebook app that helps users stay on top of special events such as birthdays and anniversaries; customers can use the app to send electronic cards to their friends' PCs and cell phones. In addition, Hallmark operates several blogs, where it shares anecdotes about the company and often solicits opinions on various aspects of greeting card design and on ideas for gifts and their pricing. The company encourages Facebook fans to talk about their lifestyles and even upload photos of themselves so that it can better understand its market. The conversations consumers have with each other often result in interesting insights, such as gift ideas for specific occasions and the prices they are willing to pay for different gifts.
-Refer to the scenario. Which of the following is an example of Hallmark's use of mobile marketing?

• A)asking customers' opinions about products
• B)encouraging customers to talk about their lifestyles
• C)establishing a Twitter account
• D)enabling customers to send electronic cards to friends' cell phones

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Definitions:

Profit-maximizing Firm

A business organization that focuses on making the highest possible profit by adjusting its production and pricing strategies.

Marginal Cost

The rise in overall expenses associated with the creation of an extra unit of a good or service.

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs, representing excess returns over the firm's opportunity costs.

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity can dictate prices, leading to optimal resource allocation.