How Does Advertising Differ from Public Relations

question 3

Multiple Choice

How does advertising differ from public relations?

• A) Advertising reaches its audience through paid media, whereas public relations does not.
• B) Public relations is more precise and carefully placed than advertising.
• C) Public relations appears just as the advertiser designs it, whereas advertising does not.
• D) All public relations messages are openly sponsored, whereas advertising is not.
• E) Advertising is a better medium than public relations for building credibility.

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Definitions:

Rational Behavior

A theory in economics suggesting that individuals make decisions based on maximizing utility and firms aim to maximize profits.

Smooth Convex Preferences

Preferences characterized by continuous and consistently increasing utility, indicating a reasoned and balanced choice pattern.

Borrow

The act of receiving something of value in exchange for the promise to return it or its equivalent value at a later date.

Lend

The act of giving money or goods to someone with the expectation that it will be paid back in the future.