Which of the Following Is True of Consumer Franchise Building

question 50

Multiple Choice

Which of the following is true of consumer franchise building (CFB) promotions?

• A)CFB promotions are designed to promote short-term brand preference.
• B)CFB promotions cannot make consumers loyal to a brand that is of little value.
• C)CFB promotions can make consumers loyal to a brand that does not provide a specific benefit.
• D)CFB promotions typically do not contribute to the development of a favorable brand image.
• E)CFB promotions are not suitable for brand extension strategies.

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Definitions:

Activity Rate

A metric used to allocate costs to cost objects based on the activities that drive costs, often used in activity-based costing.

Estimated Costs

Projected or forecasted costs associated with manufacturing, projects, or operations, used for budgeting and planning purposes.

Activity-Based Costing

A costing method that allocates overhead costs to specific products or activities based on their consumption of resources.

Estimated Overhead Cost

The projected cost of indirect production expenses for a specific period.