Criticism Has Been Leveled at the Use of Advertising Value

question 8

Multiple Choice

Criticism has been leveled at the use of advertising value equivalency (AVE) in evaluating public relations because ________.

• A)public relations doesn't require evaluation
• B)third-party endorsement multipliers are arbitrary
• C)it doesn't address whether the audience took desired actions
• D)A and C
• E)B and C

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Definitions:

Contra-Revenue

An account deducted from gross revenue or sales, which includes returns, allowances, and discounts, ultimately affecting the net revenue reported.

Purchases Discount

A reduction in the price of goods a company buys, typically for paying early or within a specified time period.

Accounts Payable

Liabilities owed by a business to its creditors for goods and services purchased on credit, which are due within a short period.

Debit Memorandum

A document issued by a buyer to a seller indicating returned goods or a request for a price reduction, increasing the buyer's accounts payable.