Three Different University Students Are Exposed to a Television Advertisement

question 41

Multiple Choice

Three different university students are exposed to a television advertisement for a new Apple computer.The advertisement contains detailed information about the computer, along with a catchy jingle: *Mary is currently in the market for a new computer, as her roommate spilled coffee on her old one.Mary is studying at her desk for an exam as the advertisement plays on the screen in the background.
*Terri is working out at the recreation center and is watching television as she exercises.The ad appears on the
Channel she is watching.She bought a new PC last semester.
*Chris is sitting in the campus computer support office when the advertisement appears on the portable TV in the office.He is watching television to pass the time and is enjoying the break from studying.Chris is very interested in computers because he is a computer science major and interns in the computer support office 5 hours a week.According to the elaboration likelihood model of persuasion, which of the students would most likely be persuaded by the ad through the central route to persuasion?

• A)Mary
• B)Terri
• C)Chris
• D)None of them would be persuaded through the central route.
• E)All of them would be persuaded through the central route.

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Definitions:

Ex Rights

The status of a stock that is sold without the benefit of any rights that may have been issued to shareholders to purchase additional shares, often at a discount.

Debt Offerings

Debt offerings involve a company issuing debt instruments, like bonds, to raise capital, obligating the company to repay the principal with interest.

Equity Offerings

The process by which companies issue shares of stock to the public or specific investors to raise capital.

Appropriate Price

The price at which assets are considered rightly valued given current market conditions and fundamentals.