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Scenario 14-3 With Social Media Websites Such as Facebook and Twitter Garnering

Question 101

Multiple Choice

Scenario 14-3
With social media websites such as Facebook and Twitter garnering so much attention from consumers and businesses alike, it is hard to believe that only 20 percent of small businesses are utilizing the sites to help promote their products and services. But that figure is precisely what was reported in a 2009 study conducted by MerchantCircle, a social network for small businesses. Once the survey results were released in 2010, experts were not surprised to see the percentage of social media users increase to nearly 50 percent; according to Darren Waddell, vice president of marketing at MerchantCircle, companies are turning to social media for advertising because it is relevant and inexpensive way to reach targeted consumers. Rather than pouring large sums of money into traditional marketing, business owners are starting to find more creative ways of promoting their brand. One of the more common practices for small business owners utilizing social media is including URLs on business cards-of all sites, Facebook (no surprise) was the most common site to make it onto business cards.(Jon Swartz, "More Small Businesses Use Facebook, Twitter to Promote." USA Today, July 21, 2010.)
-(Scenario 14-3) A new business owner is looking into various forms of advertising. Of all the different methods, he seems to be most excited about the idea of advertising through interactive media. Perhaps this is because


A) consumers no longer pay attention to traditional forms of advertising.
B) interactive media is better for small business owners.
C) traditional forms of advertising do not provide enough information for consumers.
D) the increase in wireless technology allows businesses to reach consumers at all hours of the day, regardless of location.

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