Narrative 17-1 Internet Research Firm Jupiter Communications Estimates That 47 Percent of Percent

Multiple Choice

Narrative 17-1
Internet research firm Jupiter Communications estimates that 47 percent of teens use the Net. In 1999, an entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for, and intriguing to, a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise, such as CDs, movie tickets, or beaded jewellery. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned remaining start-up capital to investors.
-Refer to the Narrative 17-1.The developer of Kibu and his investors created the first company to offer both content and chat rooms aimed at girls between the ages of 13 and 18.Which of the following were they most likely hoping to gain?

A) first-mover advantage
B) market aggregation
C) comparative promotional point
D) differential benefit