Which of the Following Is a Shortcoming of Advertising

question 37

Multiple Choice

Which of the following is a shortcoming of advertising?

• A) It does not allow dramatization of the brand or company.
• B) It only provides one-way communication with customers.
• C) It is too customized and only attracts small, niche markets.
• D) It reaches targeted customers too slowly in most cases.
• E) It is the most costly promotion tool for companies.

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Definitions:

Marginal Revenue

The revenue increase from the sale of an additional unit of a good or service.

Marginal Cost

The additional cost incurred by producing one more unit of a product.

Raise Price

An action taken by a seller to increase the selling price of a product or service, often in response to higher costs or in an attempt to increase profits.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the excess that remains after a firm has paid all costs.