Clara Listens Carefully to the Content of an Infomercial for a New

question 59

Multiple Choice

Clara listens carefully to the content of an infomercial for a new software package; Joyce focuses on the fact that there are three different celebrity endorsers who are really excited about the software package. After the infomercial has ended, both Clara and Joyce think the software is worth purchasing. According to the elaboration likelihood model,

• A)Clara will experience more cognitive dissonance than Joyce.
• B)Joyce will experience less social facilitation than Clara.
• C)Clara will have a more enduring attitude toward the software than Joyce.
• D)Joyce will have a more enduring attitude toward the software than Clara.

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture due to financial market fluctuations, interest rate changes, or bad management decisions.

Capital Structure

The blend of borrowed money and shareholder capital a corporation employs to support its operational and developmental needs.