Which of the Following Is Not a Reason Why Companies

question 63

Multiple Choice

Which of the following is not a reason why companies such as Under Armour and Movado pay Tom Brady to endorse their products?

• A)Many consumers feel more fashionable if they use the same products that Tom Brady uses.
• B)Some consumers will buy a product endorsed by Tom Brady because they believe he is particularly knowledgeable about the product.
• C)Some consumers want to feel closer to a celebrity who endorses a product.
• D)Some consumers believe that Tom Brady is more rational than the average consumer.

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Definitions:

Economic Gains

Economic gains refer to the increase in economic benefit, usually measured in terms of profit, productivity, or market share, achieved through various economic activities.

Economic Losses

Financial deficits that occur when expenses exceed revenues, or due to lost opportunities, inefficiencies, or unexpected market changes.

Chronic Budget Deficits

A fiscal situation where a government consistently spends more than it receives in revenue over a long period, leading to accumulating debt.

Spending Priorities

The allocation decisions made by an individual, organization, or government regarding where to allocate available financial resources among various competing needs or interests.