Which of the Following Statements About Advertising Is Most Accurate

question 35

Multiple Choice

Which of the following statements about advertising is most accurate?

• A)Advertising has limited control as to when and where an advertisement will be used.
• B)Advertising allows a firm to efficiently reach a large number of people.
• C)A key advantage of advertising is its ability to use customized interactions.
• D)Advertising can be a very effective attention-getter,especially for new products,but has little impact for repeat buys.
• E)Advertising is one of the least costly forms of promotion because it reaches a pretested market.

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Definitions:

Semi-annually

Occurring twice a year.

Effective Annual Yield

Annualized interest rate on a security computed using compound interest techniques.

Yield Curve

A graph that shows the relationship between the interest rates and the maturity dates of debt securities issued by the same issuer.

Liquidity Premiums

Additional yield that investors require to hold securities with lower liquidity, compensating them for the higher cost and difficulty of trading such securities.