A Classic Dilemma in Advertising Concerning the Value of Celebrity

question 29

Multiple Choice

A classic dilemma in advertising concerning the value of celebrity spokespersons is that the more products a celebrity endorses, the

• A) more competent she becomes in endorsing competing products.
• B) less trustworthy she becomes in the eyes of consumers.
• C) more popular she becomes among consumers with vastly dissimilar preferences.
• D) less likely an audience member is to use the peripheral route to persuasion.

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Definitions:

Corporate Income Tax

A tax imposed on the net income (profit) of corporations, calculated at a corporate tax rate.

Capital Intensive Techniques

Production methods that require a higher investment in physical capital rather than labor.

Payroll Tax

Impositions required from employers or employees, consistently based on a proportion of the payment to laborers.