Danielle Robinson, Account Representative for EXpert Advertising, Tells D'Orazio Tile

question 155

Multiple Choice

Danielle Robinson, account representative for EXpert Advertising, tells D'Orazio Tile Products that she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15 percent. This approach is an example of which of the following methods of determining advertising expenditure levels?

• A)Competitive parity
• B)Percent of sales
• C)Arbitrary
• D)Affordability
• E)Objective-and-task

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Definitions:

Monetary Policy

Monetary policy refers to the process by which the central bank of a country manages the money supply and interest rates to influence economic activity and maintain economic stability.

Discretionary

Pertaining to funds or spending that is subject to decision or choice by a party or authority.

Balanced Budget Amendment

A proposed federal constitutional rule requiring that the government not spend more than its income in a fiscal year.

Crowding-out Effect

A situation where increased government spending leads to reduced investment in the private sector.