Why Do Newspapers Typically Charge National Advertisers More for National

question 59

Multiple Choice

Why do newspapers typically charge national advertisers more for national ads than they charge local advertisers for local ads?

• A)National advertisers typically demand an ROP schedule.
• B)Newspapers incur additional costs in serving national advertisers.
• C)National advertisers refuse to use a promotional schedule.
• D)The Federal Trade Commission has decreed that discounts for interstate ad rates are illegal.
• E)The reach for local ads is much higher than the reach for national ads.

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Definitions:

Formal Authority

The power granted to an individual or organization to make decisions and enforce rules based on an established position.

Coercive Power

A form of power that is based on the ability to deliver punishments or sanction undesirable behaviors.

Coercive Power

The ability to compel or force someone to do something through threats or force.

Legitimate Power

Power that is officially sanctioned by an organization or institution, and is accepted by members as rightly exercised.