Use the Following to Answer the Questions

question 80

Multiple Choice

Use the following to answer the questions.
The State Farm Group includes several companies.Probably the most well-known company in the group is the State Farm Insurance company,the largest auto and home insurer in the United States.State Farm Insurance provides protection for approximately 78 million policies on auto,fire,life,and health services.It is also a leading insurer of homes and autos in Canada.Another company in the State Farm group is the State Farm Bank,which was opened in 2000,beginning State Farm's entry into the financial services field.However,the State Farm Bank is not a traditional bank,in that it has no branch offices and its services are provided through State Farm agents,a call center,the mail,and on the internet.It currently serves over 1.9 million bank accounts.
-Refer to Scenario 17.2.When deciding on its advertising allocation for the coming year,State Farm Insurance could choose to spend the same amount as Safe Auto,another auto insurance company.This method of advertising appropriation is known as the ____ approach.

• A) competition-matching
• B) arbitrary
• C) objective-and-task
• D) goals
• E) percent-of-sales

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Definitions:

Vote Trading

An arrangement where individuals agree to vote for each other's preferred choice in different decisions or elections, aimed at maximizing the fulfillment of each party's preferences.

Public Project

A project that is initiated and funded by the government aimed at delivering public goods or benefits to the community.

Marginal Benefit

The additional satisfaction or value one receives from consuming or producing one more unit of a good or service.

Vote Trading

A practice where members of a legislative body agree to vote for each other's proposed legislation or amendments.