Managers Learn from the Analytic Aspect of Marketing Mix Modeling

question 14

Multiple Choice

Managers learn from the analytic aspect of marketing mix modeling which marcom elements are outperforming others and can then use this statistical information to _____.

• A) shift budgets from program element to element 
• B) reposition products to better meet the needs of consumers 
• C) develop new products and services 
• D) construct more appropriate messages for their target market 
• E) identify new markets for their products and/or services

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Definitions:

Uncollectible Accounts

Accounts receivable that a company has determined it will not be able to collect due to customer default.

Direct Write-off

A method of accounting for bad debts where uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.

Bad Debts Recovered

When an account receivable has been written off and is recovered, this account, which is in the Other Revenue category, is credited in the direct write-off method if the recovery is in a year following the write-off.

Allowance for Doubtful Accounts

A contra asset account that estimates the portion of receivables that may not be collectible, affecting a company’s net income and assets.