Answer:
B) Signaling theory suggests that expensive testimonials from celebrities indicate a higher quality product.
Explanation:
In advertisement, signalling theory uses a biological approach that celebrities, which are seen as successful, wealthy, powerful, etc. transmit a sense of quality to the products that they endorse or recommend.
For example, Mr. T's breakfast cereal was very successful during the 1980s because customers identified Mr. T with being strong, healthy and powerful. Most people are usually followers, not leaders, and we like to follow our famous celebrities.
Answer:
profit = $1,236
Explanation:
fixed daily costs $876
variable cost per room $13
revenue per room $79
contribution margin per room = $79 - $13 = $66
32 rooms were sold today = $66 x 32 = $2,112
- fixed costs = ($876)
daily profit = $1,236
The contribution margin per unit is the difference between the additional revenue obtained from selling one more unit minus the additional costs of selling that unit.
Answer: Option A
Explanation: The marketing research that is done for the business purposes usually takes a long time and demands a whole lot of money to procure various resources that are necessary for the research.
Also, it is not guaranteed that the research will end as a profit to the organisation. Thus, the business organisation tends to be more cautions about the researches.
Hence the correct option is A.
