Name the components of persuasion and describe how they work in advertising
What will be an ideal response?
Persuasion is designed to change attitudes and behavior and build beliefs. There are many dimensions of persuasion. Advertisers identify motivation, influence, involvement, engagement, conviction, preference and intention, loyalty, and believability and credibility as key to explaining how persuasion works in advertising. Motivation is an incentive or reason to respond. The idea is that something prompts a person to act in a certain way. To intensify the consumer's level of motivation, advertising and other marketing communications such as sales promotion use incentives such as gifts, prizes, and contests to encourage people to respond. Influence refers to external people or events that shape attitudes and behavior. Involvement refers to the degree to which you are engrossed in attending to an ad or making a product decision. Involvement is built on relevance—on how much a product message connects with your life and interests. Engagement goes beyond involvement, cultivating passion for a brand. One of the factors affecting conviction, or a belief about a brand, is the power of an advertisement's argument. An argument is based on a cognitive strategy. It uses logic, reasons, and proof to make a point and build conviction. Preference involves an intention to try or buy a product. In terms of advertising effects, belief is indicated when consumers develop a preference for or an intention to try or buy a product. Brand loyalty, which is measured both as an attitude (preference) and by repeat purchases, is an important response that crosses over between thinking, feeling, and doing. It is a response that is built on customer satisfaction. Loyalty programs are designed to retain customers, as well as increase their business. Loyalty is of value because it can lead to other behavioral responses, such as advocacy for the brand and referrals. Believability and credibility are the last key components of persuasion; they refer to the trustworthiness of the information and the source of the message.
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Which statement is true with regard to the yearly rate of return method developed by Belth?
(a) It ignores dividend payments. (b) It calculates a cost per thousand per year. (c) It ignores the increase in cash value from year to year. (d) It uses an assumed price per thousand dollars of coverage.
Which of the following actions should be taken by a CPA who has been asked to audit the financial statements of a company whose fiscal year has ended?
A. Discuss with the client the possibility of an adverse opinion because of the late engagement date. B. Ascertain whether circumstances are likely to permit the auditor to obtain sufficient appropriate evidence and express an unmodified opinion. C. Inform the client of the need to express a qualified opinion if the physical inventory has already been taken. D. Ascertain whether an understanding of internal control can be obtained and the risks of material misstatement can be assessed after completion of the audit.