The Best Way to Assess the Effectiveness of All Promotion

question 212

Multiple Choice

The best way to assess the effectiveness of all promotion expenditures during the past year is to compute a __________.

• A)break-even point
• B)promotion-to-sales ratio
• C)ROI
• D)promotion-to-expenses ratio
• E)advertising-to-sales promotion ratio

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Definitions:

Expectancy Theory

A psychological theory explaining the processes that individuals use to make decisions based on their beliefs about the likelihood of success and the value of the success to them.

Expectancy

An individual’s assessment of the probability that effort will lead to correct performance of the task.

Goal Characteristics

The specific attributes or factors that define goals, including their clarity, difficulty, relevance, and the extent to which they are achievable and measurable.

Performance Levels

The degrees or stages of how effectively an individual, group, or organization meets their goals or objectives.