Which of the Following Is an Important Guideline When Using

question 157

Multiple Choice

Which of the following is an important guideline when using a fear appeal?

• A)Make sure the advertisement is still appropriate for viewing by children.
• B)Make the appeal so strong that it appears humorous.
• C)Don't make the appeal so strong that consumers will want to tune out the advertisement.
• D)Avoid any reference to death or dying.
• E)Make sure to emphasize that the outcome rests in the viewers' hands.

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Definitions:

Cost of Capital

The minimum return a corporation must achieve on its investment activities to keep its market price stable and entice financing.

Cost of Equity

The return that shareholders require or expect to earn on their investment in a company’s equity.

Horizontal Merger

A merger between two companies operating in the same industry, often aiming to create synergies, expand market share, or reduce competition.

Product Extension Merger

A strategic action where companies merge to add new product lines or services, enhancing their market reach or diversity.