Which of the Following Explains Why Sales and Market Share

question 181

Multiple Choice

Which of the following explains why sales and market share begin to decrease no matter how much is spent on advertising and sales promotion?

• A)Inverted promotion function
• B)Weber's Law
• C)AIDA
• D)Just noticeable difference (JND)
• E)Advertising response function

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Definitions:

Cost Minimization

The process of reducing expenses to the lowest possible level while still achieving the desired level of output or quality.

Normal Rate Of Return

A rate of return on capital that is just sufficient to keep owners and investors satisfied. For relatively risk-free firms, it should be nearly the same as the interest rate on risk-free government bonds.

Economic Loss

A situation where the cost of making a product is greater than the revenue gained from selling it, resulting in a negative economic outcome.

Normal Rate Of Return

The average expected or required return on an investment or project, reflecting the usual profit level for the market or industry.