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:

Financial Risk

Refers to the possibility of losing money on an investment or business venture.

Home Currency

Home currency refers to the currency of the country in which an individual or entity primarily operates or resides.

Short-Run Financial Risk

Refers to the potential for financial loss that a company faces in the immediate future due to its obligations and operating costs.