Which of the Following Is a Common Objection to Relying

question 43

Multiple Choice

Which of the following is a common objection to relying exclusively on ROMI for measuring marketing success?

• A) In a company's accounting statements, marketing expenditures tend to appear as investments rather than costs.
• B) Calculating ROMI requires knowing what would have happened if the marketing expenditures had never taken place.
• C) ROMI tends to lead managers toward a more long-term perspective on decision making.
• D) ROMI focuses on a firm's sustainability commitments to the detriment of its short-term performance.
• E) ROMI calculates profit by deducting expenditures rather than dividing by expenditures.

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Definitions:

Utility Schedule

A table showing the different levels of satisfaction or utility that a consumer derives from consuming different amounts of a good or service.

Worth

The value or importance of something, often measured in terms of money or utility.

Marginal Utility

The additional satisfaction or utility received by a consumer from consuming one more unit of a good or service.

Consumer Surplus

The divergence between the sum consumers are prepared and financially capable to pay for a good or service and the sum they actually disburse.