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As Described in the "Hands-On" Case at the End of the Chapter

Question 58

Multiple Choice

As described in the "Hands-On" case at the end of the chapter, what risky step has Sirius satellite radio taken with the goal to increase subscribers by more than 1 million?


A) They have gone to programming that is completely commercial-free.
B) They signed controversial talk show host Rush Limbaugh to bring his program to Sirius in the hopes that his loyal listeners will follow.
C) They increased their price 50 percent and touted that fact in television commercials to convey the position that they are superior to their competitor, XM Radio.
D) They signed "shock jock" Howard Stern to bring his program to Sirius in the hopes that his loyal listeners will follow.
E) They plan on increasing their advertising spending from $1 million to $100 million by 2007, and Mel Karmazin, CEO of Sirius, says this aggressive advertising growth plan will actually drive subscribers to Sirius due to their strong dislike and resistance to commercials.

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