Question

An example of the __________ effect is when BMW gained in-depth information about visitors to a popular Chinese social media site, and used that information to determine which visitors were likely to be luxury car buyers and targeted advertising toward them.a) social
b) interconnected
c) media
d) information
e) connected

Answer 1

Answer:

D) information

Explanation:

In business, the information effect refers to a company or investor taking advantage of new relevant information that they possess in order to increase sales volume or trade securities (or assets) before that information is available to the general public. When an employee of a company uses information for his/her own benefit it is illegal and is referred to insider information.

In this case, BMW gained information legally about their website visitors and is using that private information to gain a competitive advantage and increase its sales. The information itself becomes an intangible asset (even though you cannot assign a value to it) because it helps companies increase their sales volume.

Answer 2

Answer: Information Effect.

Explanation:

The information effect on marketing is been described in the question, as BMW targets their adverts to the website visitors they are informed loves luxury cars. Information is very vital in marketing, as the business marketers need the information to know how to design and target their adverts.