By Hiring Justin Bieber to Advertise Its Electronics Buy Back

question 118

Multiple Choice

By hiring Justin Bieber to advertise its electronics Buy Back program,Best Buy is hoping to change its image and reach a new,younger target market.By using celebrities such as Bieber to endorse products,companies are hoping that its customers will respond positively and business will increase.All of the following are reasons why celebrity endorsements may increase sales for advertised products except

• A) consumers may believe that celebrities have more information than they do about the advertised product.
• B) consumers may feel closer to celebrities if they purchase the products being endorsed.
• C) consumers can be sure that a company would not pay a large sum for a celebrity to endorse its product unless the product is the best available in the market.
• D) consumers may believe they will appear more fashionable if they purchase products endorsed by certain celebrities.

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Definitions:

Fund Manager

A Fund Manager is a professional responsible for making investment decisions and overseeing a portfolio of assets to achieve specified investment objectives.

Taxable Money Market Funds

Investment funds that invest in short-term debt securities and are subject to federal and sometimes state income taxes.

Tax-exempt

Income or transactions that are free from tax at the federal, state, or local level.

No-load Mutual Fund

A mutual fund that does not charge any type of sales load or commission, allowing investors to put more of their money directly into investments.