What is product placement? What is its goal and ...

[ssal]

What is product placement? What is its goal and intention?

Question 2

Which of the following is true about the transfer pricing methods of determining an arm's-length price?
 a. The arm's-length standard is only applicable for commodities businesses.
  b. The resale method is most applicable for transfers of components or unfinished goods to overseas subsidiaries.
  c. The cost-plus approach usually applies best to transfers to sales subsidiaries for ultimate distribution.
  d. The starting point for testing the appropriateness of transfer prices is a comparison with comparable uncontrolled transactions involving unrelated parties.

[enass]

Answer to Question 1

Product placement is the placing (inserting) of brands into regular entertainment, news, or other media. The intent is to create an association between the brand being placed and the audience that is interacting with the given medium. The current level of product placement in today's marketplace is the result of too much clutter in the traditional channels of marketing communications.

Answer to Question 2

D

[ssal]

Correct answers!

[enass]

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