Which of the Following Is True of Supporting Activities

question 17

Multiple Choice

Which of the following is true of supporting activities?

• A) Their contribution toward a product's value is negligible.
• B) Their contributions to margin can be calculated easily.
• C) Customer service is considered a supporting activity.
• D) Negotiation of prices is considered a supporting activity.

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Definitions:

Rule of Thumb for Advertising

Simplified principles or guidelines that provide a baseline for allocating advertising budgets or measuring advertising effectiveness.

Price Elasticity of Demand

An indicator of the responsiveness of demand for a product to variations in its price, demonstrating how sensitive the quantity of the product demanded is to price fluctuations.

Advertising Elasticity of Demand

A measure of how advertising expenditures influence the quantity demanded of a product or service.

Price Elasticity of Demand

Measures how much the quantity demanded of a good responds to a change in its price, with higher elasticity indicating greater sensitivity to price changes.