Refer to the Passage Below to Answer the Questions That

question 11

Multiple Choice

Refer to the passage below to answer the questions that follow.
You are having dinner with your former college roommate, who is a neurosurgeon. You are an account planner at an advertising agency, and you do a lot of ad testing. You're trying to get him to help you with some neurological tests to determine the effectiveness of some of your clients' ads, especially those that attempt to evoke strong emotional responses. He asks you, "If advertising is done to sell a product, why don't you just measure sales to determine the effectiveness of an ad?" You try to explain to him that it is not that simple, and you tell him about all the types of research you conduct at various stages of a campaign.
-You also explain that while it is important to calculate the return on investment (ROI) for brand communication efforts,it is often difficult to directly measure ROI.For which marketing tool is it easiest to determine ROI?

• A) broadcast advertising
• B) out-of-home advertising
• C) direct marketing
• D) public relations
• E) buzz marketing

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Definitions:

Least-squares Regression

A statistical method used to determine the relationship between variables by minimizing the sum of the squares of the differences between observed and predicted values.

Variable Lubrication Cost

Costs for lubricants that vary with the level of machinery activity or operation hours.

Mixed Cost

A cost consisting both of variable and fixed components, which changes in total in response to changes in activity level but not necessarily in direct proportion.

Least-squares Regression

A method in statistics for finding the optimal line of fit by minimizing the sum of the squared deviations between real and estimated values.