Which of the Following Situations Would Be Most Conducive to the Use

question 126

Multiple Choice

Which of the following situations would be most conducive to the use of a comparative advertising message?

• A)when a company is a market leader with high market share
• B)when a company is a market leader and is concerned about a new, smaller company entering the market
• C)when a market leader wants to promote its brand to customers of smaller companies in the same industry
• D)when a company with a new brand wants to position that brand against established brands
• E)when a company wants its audience to know the different companies that it is competing with

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Definitions:

Marginal Revenue

The surplus revenue earned from the sale of an extra unit of a product or service.

Profit

The earnings obtained when income from a business endeavor outstrips the total expenses, costs, and taxes necessary to maintain that endeavor.

Marginal Revenue

The additional income that is gained from selling one more unit of a product or service.

Price Change

A modification in the selling price of goods or services over a period.