An Advertiser Preparing to Run a Large Ad in a Weekly

question 54

Multiple Choice

An advertiser preparing to run a large ad in a weekly newspaper needs to know that _____ can be a disadvantage associated with the selection of newspapers as the media vehicle.

• A)lack of geographic selectivity
• B)lack of demographic selectivity
• C)noise as defined by the communications process
• D)pass-along readership
• E)lack of reader involvement

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Definitions:

Expected Percentage Change

An estimation of the degree to which a specific variable such as price, cost, or investment value is anticipated to vary over a certain period.

Interest Rates

The percentage of a loan that is applied as interest for the borrower, usually shown as an annual percentage of the remaining loan amount.

Uncovered Interest Parity

A theory in economics that posits the difference in interest rates across two countries will match the anticipated shift in exchange rates between their currencies.

Interest Rate Parity

A theory stating that the difference between the interest rates of two countries is equal to the differential between the forward exchange rate and the spot exchange rate of their currencies.