Which one of the following financial metrics is not a lag indicator of marketing performance?
A) growth in revenues
B) growth in profitability
C) return on equity
D) return on marketing investment

Question

Quizplus · Accepted Answer

Return on equity is a financial metric that measures the rate of return earned on the ownership interest (i.e., equity) of the company's common stockholders. It is not directly tied to marketing performance and therefore not a lag indicator of marketing performance. On the other hand, growth in revenues, growth in profitability, and return on marketing investment are all financial metrics that can be influenced by marketing performance and are considered lag indicators.

Which One of the Following Financial Metrics Is Not a Lag