Despite the Results of Some Controlled Laboratory Studies of the Effects

question 27

Multiple Choice

Despite the results of some controlled laboratory studies of the effects of subliminal information on people's attitudes, because ________, consumers need not fear that advertisements will come to control their behavior.

• A) the FCC bans subliminal messages on television
• B) laboratory conditions seldom mirror real-life situations
• C) people process advertisements peripherally
• D) attitudes seldom if ever predict actual behavior

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Definitions:

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specific rate of return.

Cash Inflows

Money received by a business, typically from sales, investments, financing, and other business activities.

Project Profitability Index

A financial metric used to determine the relative profitability of a project, calculated by dividing the present value of future expected cash flows by the initial investment.