Scenario 8-3 After Working as an Account Executive in an Advertising Agency

question 57

Multiple Choice

Scenario 8-3
After working as an account executive in an advertising agency for 20 years, you've decided you want to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells you the store and its entire inventory, but with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan.
-(Scenario 8-3) Your goals are very important at this stage,and you want to avoid budgeting methods that neglect to consider goals.This means that you can cross off one approach that is notorious for failing to relate advertising dollars to advertising objectives,and since you have no past records,this method would be impossible to implement anyway.Which of the following methods is this? 

• A) share-of-market approach 
• B) share-of-voice approach 
• C) percentage-of-sales approach 
• D) objective-and-task approach

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Definitions:

Independent Variables

Variables that are manipulated or changed in an experiment to observe their effects on dependent variables.

Curvilinear Relationships

Relationships between two variables where the strength and/or direction of the association changes over the range of the variable's value, forming a curve rather than a straight line.

Confounds

Variables that could potentially contaminate or influence the outcome of an experiment, making it hard to interpret the effects of the primary variables of interest.

Factorial Design

An experimental strategy in which factors are varied together to examine their interaction effects on a response variable.