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:

Discharges

The release or dismissal from a duty, obligation, or liability.

Employer

An individual or organization that hires and pays people to work for them under agreed-upon terms.

Adequately

In a manner that is sufficient or satisfactory for a particular purpose.

Performance

In contract law, it refers to the act of doing what is required by a contract.