Negative Word of Mouth

question 195

Multiple Choice

Negative word of mouth:

• A)has been shown to increase consumers' intentions to buy products.
• B)has been shown to increase the credibility of a company's advertising.
• C)is less harmful for products that are new to an area or a country.
• D)is a powerful information source in developing countries.

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Definitions:

Support Department Allocation Rate

A rate used to distribute the costs of support departments to producing or service departments based on their usage or consumption of support services.

Cost Drivers

Factors that cause variations in the cost of an activity or process, used in activity-based costing to allocate overhead costs more accurately.

Profit Center

A branch or division of a company that is directly responsible for generating a significant portion of the company's profits.

Support Department Allocations

The process of distributing the costs of support departments (e.g., human resources, maintenance) to producing departments based on their usage of services.