Which of the Following Is a Reason Why an Advertiser

question 66

Multiple Choice

Which of the following is a reason why an advertiser would decide against using direct marketing?

• A) It does not allow advertisers to determine the cost per response.
• B) It is the least effective way of developing a good database.
• C) It does not offer convenience to time-sensitive consumers like mass media does.
• D) It does not help advertisers in judging the effectiveness of the medium they are using.
• E) It is more costly than mass media to build an image for a product.

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Definitions:

Diminishing Marginal Returns

A principle stating that if one factor of production is increased while other factors are held constant, the additional output generated will eventually decrease, related to diminishing marginal utility but applied to production.

Short-Run Equilibrium

A condition in a market or economy where all forces are balanced, but only temporarily; prices and output may change until a long-run equilibrium is achieved.

Long-Run Equilibrium

A condition where an economy or market achieves a stable state after adjustments, where supply equals demand over an extended period.

Pure Competition

A market structure characterized by a large number of sellers and buyers, free entry and exit, and a product that is homogeneous across producers.