Exam 11: Operating in a Digital Marketing and Social Networking

Scenario-Based The practice of using dynamic pricing was started in the 1980's by American Airlines as an effort to compete with a now out-of-business discounter airline, People's Express.Dynamic pricing then moved to other industries, including hotels and car rental companies, but only became popular when e-commerce arrived. You are a consultant to a number of different organizations that use dynamic pricing, including American Airlines, St.Louis Cardinals, Coca Cola, and Marriott International.You are advising your clients of the use of dynamic pricing.Here are some questions that they have raised: -What is dynamic pricing?

Which statement about content marketing is false?

Which pricing approach calculates the amount that can be spent to make a product by determining how much consumers are willing to pay and then subtracting a reasonable profit?

Scenario-Based When Mark Zuckerberg (founder of Facebook) tried the Oculus Rift designed by Palmer Luckey, he was convinced that the virtual reality headset was "the future." He was wearing the headset in a FaceBook office, but he felt as if he was in another universe.He imagined that he was in an abandoned castle in the mountains with snowflakes falling on him.He turned his head and found himself staring at an ugly human or animal figure sprouting lava.His comment was, "Wow, that was pretty awesome." -How much did Mark Zuckerberg (founder of Facebook) pay for Oculus?

Palmer Luckey's backers were early adopters who enjoyed becoming part of the development process.

Skimming pricing is a long-term pricing approach in which a company charges a low price for a new product to keep out competition and grab market share.

Which of the following statements about dynamic pricing is false?

The purpose of Starbuck's content marketing campaigns is to promote its products.

How does content marketing attract potential customers?

The use of RFID (radio-frequency identification) tags attached to an item can be used to collect data on customers.

Dynamic pricing has been used to price tickets to professional sporting events.

A company using dynamic pricing considers only two factors: consumer demand and alternative products.

Students use mobile applications primarily for educational purposes.

Using dynamic pricing a company monitors price changes on a constant basis and adjusts its prices effortlessly.

One of the reasons Starbucks is successful at content marketing is that its campaigns are community focused.

A revenue optimization system can set a "hurdle" rate - a rate above which the hotel will not price the room.

Brick and Mortar stores do not use Big Data.

Social media marketing is an interesting form of product marketing.

Big Data used by a particular company has to be collected internally by that company.

If a college student is making a purchasing decision, it is unlikely that he or should would be interested in this type of product.