As President of a Successful Advertising Agency, You Have Been

question 58

Multiple Choice

As president of a successful advertising agency, you have been asked by a potential client to tell her about the roles advertising can play for her business. Which one of the following should you not tell the potential client?

• A) Advertising has the greatest reach and creative power of any available promotional tool.
• B) Advertising can contribute to economies of scale.
• C) Effective advertising can create inelasticity of demand.
• D) Effective advertising can make up for an ineffective marketing mix to generate sales.

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Definitions:

Consumer Socialization

The process by which young individuals acquire skills, knowledge, and attitudes relevant to their functioning as consumers in the marketplace.

Opinion Formation

The process by which individuals develop their viewpoints and beliefs about a topic, often influenced by factors like media, personal experiences, and social networks.

VALS Framework

A psychographic segmentation tool that classifies consumers based on their values, attitudes, and lifestyles.

Psychological Resources

Mental and emotional assets that help individuals cope with life's challenges, such as resilience, self-esteem, and optimism.