Which of the Following Statements About the Interaction of Pricing

question 68

Multiple Choice

Which of the following statements about the interaction of pricing with advertising and promotion is true?

• A)The positive relationship between high relative advertising and price levels is weakest for products in the introductory stage of the product life cycle.
• B)The positive relationship between high relative advertising and price levels is weakest for products that are market leaders.
• C)Companies with high-quality products suffer the least, in terms of return on investment, with inconsistent advertising and pricing strategies.
• D)Brands with low relative advertising budgets are able to charge premium prices.
• E)High relative ad expenditures should accompany premium prices, and low relative ad expenditures should be tailored to low prices.

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