Which of the Following Statements Describes How Brand Equity Is

question 92

Multiple Choice

Which of the following statements describes how brand equity is affected by the increased use of sales promotion?

• A)Critics argue that sales promotions generally result in higher brand equity.
• B)Sales promotions do not contribute to the erosion of brand equity.
• C)Marketing experts argue that higher spending on sales promotion is at the expense of media advertising, which leads to a decline in brand equity.
• D)There is strong agreement among marketing professionals that any type of sales promotion activity detracts from brand equity.
• E)Marketing experts generally agree that advertising plays an important role in building and maintaining a brand's image and position, which are core components of its equity.

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Definitions:

Average Costs

The total costs (fixed and variable) divided by the number of units produced, reflecting the average cost per unit.

Manufacturing Overhead

Any production expenses beyond the cost of direct materials and labor, which include charges like equipment wear and tear, as well as overhead costs such as utility bills and property rental fees.

Produced Units

The quantity of finished goods a company has manufactured during a specific time period.

Maintenance Cost

Expenses incurred to keep property, plant, and equipment in operating condition, ensuring they can perform their intended functions.