When a Firm Is Interested in Earning Word-Of-Mouth Publicity from Customers,which

question 141

Multiple Choice

When a firm is interested in earning word-of-mouth publicity from customers,which of the following approaches would help the firm?

• A) The firm has to discourage referral programs, as they do not promote positive word-of-mouth always.
• B) The firm has to ask for recommendations from satisfied customers.
• C) The firm should show a high performance, though it can be inconsistent.
• D) To maintain reliability, the firm should offer social media content that cannot be easily shared.
• E) The firm should make the customers believe that all of its products are great for recommendation.

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset, where the cost of the asset is evenly divided over its useful life.

Bond Premium

The surplus of a bond's market price over its nominal or face value.

Face Amount

The total amount of money that will be paid at maturity by a financial instrument such as a bond or life insurance policy.

Unamortized Premium

The portion of the premium paid over the par value of a bond that has not yet been expensed in the company's financial statements.