Which of the Following Statements Is True of the Factors

question 119

Multiple Choice

Which of the following statements is true of the factors that affect an advertising budget?

• A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share.
• B) Brands in less-differentiated or commodity-like product classes require very less advertising to establish a unique image.
• C) New products typically merit large advertising budgets to build awareness and to gain consumer trial.
• D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard.
• E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales.

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Definitions:

Novel

Something that is new, original, and not previously seen or experienced.

Exciting Things

Objects, events, or experiences that arouse enthusiasm, interest, or adrenaline.

Two Factor Theory

A theory that explains emotions and their arousal through a combination of physiological arousal and cognitive interpretation of that arousal.

Arousal

A state characterized by both physical and mental responsiveness or awareness, commonly linked with heightened alertness and an accelerated heartbeat.