Solved

Scenario 16

question 52

Multiple Choice

Scenario 16.2 Use the following to answer the questions.
The manufacturers of Whizz, a new laundry detergent, are developing their promotional plan for the first year. They know they want to use an integrated communications strategy and are considering the use of advertising through TV and magazines, coupons, public relations, sales promotion, and viral marketing. They are not sure when to use each of these methods, however, and have asked for your advice.
Refer to Scenario 16.2. The makers of Whizz have decided to go to several different colleges and have a contest for the dirtiest shirt. While at the colleges, they will set up several washing machines near the campus bookstore, demonstrating the power of Whizz to get these dirty shirts clean. Each contestant in the dirtiest shirt contest will receive a coupon for a free bottle of Whizz. The winner of the contest will receive a $50 gift card for the college bookstore. This method of promotion is an example of ____, and is used to stimulate ____ demand.

Definitions:

Black Markets

Illegal trading systems where goods or services are bought and sold at prices not regulated by the government, often in violation of price controls or rationing.

Black Market

An illegal trading system where goods or services are exchanged without the authorization of the government.

Rent-Controlled Apartment

Housing units whose rent is set and regulated by a government authority, typically below the market rate to make it affordable.

Agency Theory

Addresses potential conflicts of interests among different groups of stakeholders in an organization. The name of the theory and some of its basic principles are derived from the fact that, in most modern organizations, the individuals who own a firm do not actually run it on a daily basis. Problems arise when the interests of the owners (the principals) are in conflict with the interests of the managers (agents).