Social Media Advertising Is Helpful to Brand Managers Because Consumers

question 42

Multiple Choice

Social media advertising is helpful to brand managers because consumers are

• A)captive receivers who buy products online.
• B)end receivers who buy products online.
• C)traditional consumers who buy products in retail stores.
• D)active receivers who send user-generated content to both friends and advertisers.
• E)traditional receivers who browse products online.

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Definitions:

Equivalent Annual Cost

A financial analysis tool used to compare the cost effectiveness of two or more projects with differing lifespans, by calculating the annual cost of each.

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Stand-Alone Principle

A method of evaluating investment projects as if they were the only project the company is undertaking, assessing their viability on their individual merits.

Depreciation Tax Shield

The reduction in income tax that results from the allowance for depreciation, which can be considered a non-cash expense that decreases taxable income.