The Return on Social Media Impact Model

question 19

Multiple Choice

The return on social media impact model:

• A) demonstrates how many "opportunities to see" for the target audience were generated by the social media tactics.
• B) tracks coverage across media and in different markets against sales over time.
• C) relies upon survey data to assess the effectiveness of social media marketing.
• D) measures effective resource utilization.
• E) captures how effective a company is at using capital to generate profits.

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Definitions:

Net Operating Income

The revenue from a business's operations after subtracting operating expenses, excluding taxes, and interest.

Common Fixed Expense

Costs that do not vary with production volume, and are shared among different products or business segments.

Contribution Margin Ratio

The portion of sales revenue left over after variable expenses have been deducted, expressed as a percentage of sales revenue.

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as raw materials and direct labor.