A Key Advantage of Using Print Recognition to Test an Ad

question 87

Multiple Choice

A key advantage of using print recognition to test an ad is that it

• A)demonstrates whether or not a consumer will buy the brand being advertised.
• B)allows for comparison with the performance of other ads from past years.
• C)tells whether consumers will remember the brand when they are in the store.
• D)reassures the client that the ad agency knows what it is doing.

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Definitions:

Net Present Value

A valuation method that calculates the value of future cash flows in today's dollars by discounting them at a particular rate.

Internal Rate Of Return

The critical interest rate that nullifies the net present value of cumulative cash flows from a project.

Discount Rate

The interest rate charged to banks for borrowing short-term funds directly from the Federal Reserve, or broadly, the interest rate used to discount future cash flows to present value.

Average Account Rate

represents the average rate of return on an investment or portfolio over a specific period.