Which of the Following Statements Describes a Good Reason for Using

question 12

Multiple Choice

Which of the following statements describes a good reason for using celebrities in ads and having them endorse a company's product or service?

• A)Celebrities cannot draw attention to advertising messages in a cluttered media environment.
• B)The respect,popularity or admiration a celebrity enjoys may carry over to the product she or he endorses.
• C)Celebrities may be unable to enhance the target audience's perceptions of the products' image or performance.
• D)Consumers may focus attention on the celebrity and not attend to the product and advertising message.
• E)The celebrity may be overexposed that would help achieve the recognition that is desired.

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Definitions:

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Product Quality

The measure of how well a product meets customer expectations or adheres to standards.

Qualitative Characteristic

Attributes that make the information provided in financial statements useful to users.

Investment Analysis

The process of evaluating an investment for profitability and risk, which involves analyzing financial statements, market trends, and other factors.