If a Company Wants to Increase Its Click-Through Rate It

question 180

Multiple Choice

If a company wants to increase its click-through rate it should

• A)include video in its ad.
• B)rely on text-only advertisements.
• C)avoid the use of banner or pop-up ads.
• D)use the pay-per-click advertising model.
• E)None of these answers is correct.

---

Definitions:

Diminishing Marginal Utility

A principle stating that as a person consumes more units of a particular good or service, the satisfaction (utility) gained from consuming each additional unit decreases.

Income Effect

Variations in income for either a person or the economy as a whole, and how these variations influence the demand for specific goods or services.

Substitution Effect

A shift in consumer preferences resulting from alterations in the comparative costs of different products, causing buyers to switch from one product to another.

Demand Curves

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing to buy at that price.