The advertising response function helps marketers:

a. create ads that will be noticed by consumers each time the ad runs.
b. use their advertising budgets wisely.
c. calculate the break-even points for each product being advertised.
d. determine the reach and frequency of a specific medium


ANSWER: b
Sales and market share improvements slow down and eventually decrease no matter how much is spent on advertising and sales promotion. This phenomenon is called the advertising response function. It helps marketers use their advertising budgets wisely.

Business

You might also like to view...

The first federal regulatory agency was the ________.

A. Interstate Commerce Commission B. Securities and Exchange Commission C. Federal Trade Commission D. Occupational Safety and Health Administration

Business

You are trying to figure out which data collection method among self-administered survey, focus group, and observation you should use during your evaluation. Write the most appropriate data collection method for each situation.

a. When collecting data from a large number of people in different locations: ______ b. To identify multiple stakeholders’ experience and opinions on a certain topic: ______ c. To understand physical, social, and cultural contexts in which stakeholders work/live: ______

Business

The Bijou Classic Movie House changes ticket prices as demand for a movie increases or decreases. Prices can change every hour as ticket sales go up or down for particular shows. Bijou Classic Movie House appears to be using

A. cumulative discounting. B. penetration pricing. C. status quo objectives. D. seasonal discounts. E. dynamic pricing.

Business

You randomly draw a sample of n = 25 from a population where ? = 3. Which is the appropriate formula for the bounds of a 95% confidence interval?

a. x ?±1.960*0.60 b. x ?±1.645*0.60 c. x ?±1.960*0.12 d. x ?±1.645*0.12

Business