The Primary Reason That Some Advertisers Set Up a Wholly

question 21

Multiple Choice

The primary reason that some advertisers set up a wholly owned in-house ad agency is to

• A) attract the best photographers and graphic artists.
• B) save money and tighten control over their advertising.
• C) stimulate external creative efforts on the part of the marketing staff.
• D) meet the challenges of mass media with respect to creative incentives.
• E) utilize inexpensive social media tools in their online advertising efforts.

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Definitions:

Indifference Curve

A graphical representation showing different combinations of two goods that provide an individual with the same level of satisfaction.

Favorite Bundle

In economic theory, it refers to the most preferred combination of goods and services by an individual or consumer.

Intransitive Preferences

A situation in consumer choice theory where a consumer's preferences are not consistently ordered, making some choices irrational when compared directly.

Law of Demand

The law of demand states that, all else being equal, there is an inverse relationship between the price of a good and the quantity demanded by consumers.