Brady and Quinn Are Trying to Develop an Ad Campaign

question 134

Multiple Choice

Brady and Quinn are trying to develop an ad campaign in which a key element is the trustworthiness of the message's communicator.Toward this end,they may wish to utilize

• A)a public service message.
• B)overheard communications.
• C)novel advertising.
• D)political campaigns.

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Definitions:

Mixed Costs

Expenses comprising both fixed and variable components, changing in total with the level of activity but not proportionately.

Merchandising Firm

A business that purchases finished goods for resale in order to make a profit, differentiating itself from manufacturing firms and service firms.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; a measure of profitability.