One Advantage of Using the Internet as an Advertising Medium

question 168

Multiple Choice

One advantage of using the Internet as an advertising medium is

• A)there is no need to segment markets.
• B)messages are automatically translated into multiple languages.
• C)there are no real costs except computers used for initial encoding.
• D)it is relatively simple to run national online campaign across multiple sites.
• E)it offers a way to reach younger consumers who have developed a preference for online communication.

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Definitions:

Competition

The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.

Business-stealing Externality

A situation where a new entrant in a market captures a portion of the incumbent firms' customers, causing economic losses to existing businesses.

Product-variety Externality

An economic effect where the variety of products available in the market impacts the welfare of consumers, often positively.

Efficient Scale

The level of production at which average total costs are minimized, indicating the most cost-effective scale of operation.