Use the Following to Answer the Questions

question 98

Multiple Choice

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.After a few weeks,then 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 16.1.Suppose that Toyota has decided to contract with the producer of the next James Bond 007 movie to use one of its new vehicles in a chase scene.This would best be an example of

• A) sales promotion.
• B) word-of-mouth promotion.
• C) product placement.
• D) viral marketing.
• E) publicity.

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Definitions:

Annual Depreciation

The portion of the cost of a fixed asset that is expensed each year over its useful life.

Payback Period

The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment, used as a measure of the investment's risk and profitability.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment appraisal and capital budgeting.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period.