Surveys,testing of Marketing Campaigns,sneak Previews,and Tracking Studies Are All Examples

question 261

Multiple Choice

Surveys,testing of marketing campaigns,sneak previews,and tracking studies are all examples of market research techniques.Collectively,they are used in the movie industry to

• A) estimate a production company's potential market share.
• B) identify prospective nominees for industry awards such as the Oscars.
• C) create an advance market for the movie's DVD release regardless of whether it is successful in its theater release or not.
• D) identify possible story lines and/or plots for future movie ventures.
• E) reduce uncertainty and improve marketing decisions.

---

Definitions:

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business venture for the first time.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue.

Marginal Tax Rate

The rate of tax applied to the next dollar of taxable income, indicating how much tax will be paid on an additional dollar earned.