Refer to the Passage Below to Answer the Following Questions

question 110

Multiple Choice

Refer to the passage below to answer the following questions.
Polo Ralph Lauren manufactures and sells high-quality, expensive brands of clothing as well as accessories, cosmetics, and home products. The company maintains complete control over the brand image and all of the functions necessary to develop, execute, and deliver advertising. Polo appeals to consumers' lifestyle aspirations. Its products are of high quality and better than most competitors' offerings. The objective in the company's advertising is to convey this image and the fashion statement it makes.
-Because Polo Ralph Lauren wants to maintain close control over its image and advertising,which of the following statements is most likely true?

• A) Polo Ralph Lauren will most likely use an outside advertising agency to develop and execute its advertising.
• B) Polo Ralph Lauren will most likely use an agency-of-record to develop and execute its advertising.
• C) Polo Ralph Lauren will most likely not use any outside resources, such as suppliers, to assist in developing and executing its advertising.
• D) Polo Ralph Lauren will get better media rates by not using an advertising agency to purchase advertising time and space.
• E) Polo Ralph Lauren will most likely use an in-house agency to develop and execute advertising.

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Definitions:

Cross-Price Elasticity of Demand

The sensitivity measure of one good's demanded quantity to the price changes of a separate good.

Rice and Beans

A staple food dish in many cultures around the world, consisting of rice and beans as the main ingredients.

Complements

Goods or services that are typically consumed together, where the increase in the price of one leads to a decrease in demand for the other.

Linear Demand Curve

A graphical representation of demand where a straight line shows a constant relationship between quantity demanded and price.