H&M, a Clothing Company, Communicates to Its Target Customers by Advertising

question 113

Multiple Choice

H&M, a clothing company, communicates to its target customers by advertising in magazines, offering clothing information on its website, creating a periodic online newsletter, Facebook, and Twitter. These vehicles through which the coded message is transmitted from the source, H&M, to the receiver, the prospective customer, are known as a(n) :

• A) fields of reference.
• B) decoders.
• C) encoders.
• D) relay channels.
• E) communication channels.

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Definitions:

Efficiently Allocated

A situation wherein resources are distributed in such a way that maximizes the net benefits gained from their use, leaving no opportunity to make someone better off without making others worse off.

Marginal Cost

The cost incurred from producing one more unit of a good, reflecting changes in production expense with output variation.

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Industry Expands

The growth phase of an industry characterized by an increase in output, number of producers, or production capacity.