Which Theory Is Used to Explain and Hypothesise That the Core

question 18

Multiple Choice

Which theory is used to explain and hypothesise that the core reason for decline in the impact of television advertising is adjustment to the level and type of stimuli to which we are accustomed?

• A) selective retention theory
• B) selective perception theory
• C) adaptation level theory
• D) adaptation overload theory

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Definitions:

Up-front Costs

Initial expenses required to start a project, product, or service before any financial return is seen.

Discounted Payback Period

The time required to recoup the cost of an investment while considering the time value of money, typically shorter than simple payback period.

Required Return

The least profit anticipated by an investor from an investment in a certain asset, given its risk profile.

Cash Flows

The net amount of cash being transferred into and out of a business, especially as affecting liquidity.