Scenario 12-2 When Advertisers Consider Running Ads in American Life Magazine, They

question 30

Multiple Choice

Scenario 12-2
When advertisers consider running ads in American Life magazine, they have the option of buying geographic and demographic editions as well as the national edition. For instance, they can choose from editions targeted at professionals and managers, homeowners, working women, and people aged 50 and older. In addition, they are offered editions for 8 geographical regions and for the top 20 metropolitan areas. American Life also offers multiple-page discounts for advertisers buying four or more consecutive pages in any one edition, as well as other volume discounts. The basic rate to reach 2,847,600 readers in its national edition with a full-page, four-color advertisement is $91,300. The basic rate to reach the same number of 2,847,600 nationwide readers with a single-column, black-and-white ad is $31,300. 
-(Scenario 12-2) The owners of the oak furniture company are now considering buying an ad in American Life.However,before they go ahead with their decision,they want to know the approximate number of times an individual within a target audience will be exposed to an ad in American Life in a given period of time.Which of the following are they referring to? 

• A) Placement 
• B) Frequency 
• C) Reach 
• D) Continuity

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Definitions:

Excess Capacity

A situation where a company can produce more goods or services than currently demanded by its market.

Unit Variable Cost

The variable cost associated with producing one unit of a product, including materials, labor, and other costs that vary with production volume.

Special Unit Price

A unique price offered for a product or service, typically different from the standard pricing.

Regular Sales Price

Regular sales price refers to the standard price set for a product or service before any discounts or promotions are applied.