How Do Advertisers Exploit Reference Groups

question 41

Multiple Choice

How do advertisers exploit reference groups?

• A) They offer group deals, so if you purchase the same item as a friend, you both get a discount.
• B) They show images of people whom we hope to be like purchasing and using goods the advertisers are trying to sell.
• C) They offer a discount on purchasing items in bulk, such as a "buy-one-get-one-free" deal.
• D) They offer a trial subscription for free and then charge after the consumer has likely forgotten that they subscribed.

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Definitions:

Sales Revenue

The total amount of money generated from selling goods or services before any expenses are subtracted.

Raw Material

Basic material that is used in the manufacturing process to produce goods, often processed and transformed into finished products.

Cash Outflows

Money that exits a business or an individual's account, typically for payments or purchases.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investing, and financing activities.