Rational Appeals Are Most Effective When Consumers Have Low Levels

question 162

True/False

Rational appeals are most effective when consumers have low levels of involvement, but are willing to pay attention to the ad.

---

Definitions:

Increasing Returns

An increase in a firm’s output by a larger percentage than the percentage increase in its inputs.

Diminishing Returns

A principle stating that after a certain point, additional investment or effort yields progressively smaller increases in output.

Marginal-cost Curve

The marginal-cost curve represents how the cost of producing one additional unit of a good changes as its production volume varies.

Marginal Product

The additional output that is generated by employing one more unit of a specific input, ceteris paribus.