Which of the Following Is the Best Example of a Celebrity

question 10

Multiple Choice

Which of the following is the best example of a celebrity endorser enhancing consumers' perceptions of the performance capabilities of a product?

• A)Professional golfer Arnold Palmer endorsing Pennzoil motor oil
• B)Former boxer George Foreman endorsing Meineke automobile repair service
• C)Actress Catherine Zeta-Jones endorsing a mobile phone service
• D)Model Cindy Crawford endorsing Revlon cosmetics
• E)Racecar driver Ward Burton endorsing Ferris brand lawn mowers

---

Definitions:

Price Increase

An adjustment in the cost of goods or services, typically resulting in consumers paying more for those items.

Contribution Margin Ratio

A financial metric that measures how much of a company's revenue is left over after variable costs are subtracted, expressed as a percentage of sales revenue.

Variable Expense Ratio

A ratio computed by dividing variable expenses by sales.

Operating Leverage

A financial concept that measures the proportion of fixed costs in a company's cost structure, indicating its sensitivity to changes in sales volume.