Tread IncIs the Market Leader for Sports Shoes in the Subcontinent

question 5

Multiple Choice

Tread Inc.is the market leader for sports shoes in the subcontinent of Gavon.Though the brand has not introduced any new product lines over the past decade,its signature products enjoy a high demand and have always remained popular.According to the concept of advertising response function,which of the following should be Tread Inc.'s advertising strategy?

• A)​It should have a large budget for advertising expenditures.
• B)It should spend proportionately less on advertising than on a newer line.
• C)It should penetrate consumers' perceptual defenses and affect purchase intentions.
• D)​Its advertisements should easily affect target consumers' deeply rooted values and attitudes.

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Definitions:

Cash Discounts

A reduction in the invoice amount by a seller, offered to the buyer in return for early payment of their bill.

Stock Dividends

A form of dividend payment made in the form of additional shares rather than cash, increasing the number of outstanding shares.

Separation Of Duties

A risk management strategy that divides responsibilities within an organization to reduce the risk of fraud or error.

Internal Control System

Procedures and methods to control a firm’s assets as well as monitor its operations.