Which of the Following Best Explains Why Direct-Response Television Commercials

question 87

Multiple Choice

Which of the following best explains why direct-response television commercials have seen an increase in popularity in recent years?

• A) It has become simpler to replicate the success of previous direct-response TV ads.
• B) Traditional broadcast and cable advertising has become prohibitively expensive for many mid-sized companies.
• C) Return on advertising investment can be easily measured.
• D) The popularity of home shopping channels has lent direct-response commercials more credibility.
• E) Consumers are more likely to respond to this type of marketing than to other forms of direct marketing.

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Definitions:

Regressive

A term typically used to describe a tax system where the tax rate decreases as the taxable amount increases, disproportionately affecting those with lower incomes.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the percentage of an additional dollar of income that is paid in tax.

Taxable Income

The amount of an individual's or company's income that is subject to taxes, after all deductions and exemptions are applied.

Average Tax Rate

The percentage of total income paid in taxes, calculated by dividing the total tax paid by the taxpayer’s total income.