What Effect Does Advertising Have on Consumer Demand

question 92

Multiple Choice

What effect does advertising have on consumer demand?

• A)Advertising creates trade barriers that prevent new competitors from entering the marketplace.
• B)Advertising slows the rate of product decline.
• C)Advertising moves the product quickly to the point in the product life cycle where it can be replaced by more efficient IMC.
• D)Advertising slows the adoption process and thus,lengthens the product life cycle.
• E)Advertising is intended to provide a smooth layoff to products in the latter stages of their PLC.

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Definitions:

Repetitive Decisions

Decisions that occur regularly, requiring a consistent approach or strategy to manage typical situations or processes.

Financial Impact

Describes the effect of a business event or decision on a company's financial health, often measured in terms of revenues, expenses, or profits.

Expected Value

The anticipated value of a variable, calculated as the sum of all possible values each multiplied by the probability of its occurrence.

Guaranteed Amount

A certain sum of money promised to an individual or entity under specific conditions or agreements.