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Scenario 15.1 Use the Following to Answer the Questions

question 39

Multiple Choice

Scenario 15.1
Use the following to answer the questions.
When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends and through social media. After a few weeks, a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas.
-Refer to Scenario 15.1. Suppose Toyota also offered the dealership salespeople a trip to Hawaii for anyone who could sell ten of the new vehicles within the first month they were available? This tactic would be an example of ____ marketing, while the TV commercials described above would be an example of ____ marketing.

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

Allowance for Doubtful Accounts

A contra-asset account that estimates the portion of accounts receivable which may not be collected, reducing the reported amount of receivables.

Bad Debt Expense

The cost a company incurs because of the inability to collect payments from customers for credit sales, recognized as an expense.

Uncollectible Accounts

Accounts from which businesses are unable to obtain payment, often leading to writing off these amounts as a bad debt expense.