One of the driving forces in modern advertising is:
A) development, protection, and maintenance of brand value.
B) creative brand extensions.
C) the dilution of niches.
D) the absolute need for humor and sexual images to break through clutter.
E) always looking for a new brand extension.
A
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TV advertising is considered to be particularly advantageous because ________
A) the low volume of nonprogramming material on television makes it difficult for consumers to ignore or forget ads B) it provides detailed product information and effectively communicates user and usage imagery C) it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits D) TV channels are very targeted, ads are relatively inexpensive to produce and place, and short closings allow for quick response E) it lets companies achieve a balance between broad and localized market coverage
Assume that a firm has a steady record of paying high dividends for years. A new management
team decided to cut the current year's dividend in half without disclosing why. The market value of the stock fell 35% on the day the dividend cut was announced. Which of the following would best explain the stock market's reaction to the announcement? A) residual dividend theory B) information effect C) empirical theory D) dividend irrelevance theory